Fun

Bitcoin traders’ profit margins repeat 2022 bear market — New research

News Feed - 2024-07-11 12:07:43

William Suberg8 hours agoBitcoin traders’ profit margins repeat 2022 bear market — New researchBitcoin is exhibiting classic bottoming-out territory when viewed through the lens of unrealized losses, CryptoQuant says.2052 Total views5 Total sharesListen to article 0:00Markets NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin traders face bear market-style losses as a new report warns that a return to the upside could take months.


In its latest Weekly Report shared with Cointelegraph on July 10, onchain analytics platform CryptoQuant said that Bitcoin (BTC) market conditions are echoing late 2022.BTC profits echo the post-FTX climate


Bitcoin faces multiple hurdles in returning to its bull market, and traders and miners are feeling the strain.


CryptoQuant revealed that more recent large-volume investors, known as whales, have distributed coins worth $1 billion in July alone.


“The fact that new and large investors are now realizing losses could be an early sign of Bitcoin price bottom. Previously, in February-March, this investor cohort had realized strong profits as prices peaked above $70K,” it commented.Bitcoin whales’ realized profits (screenshot). Source: CryptoQuant


In further contrast to the golden days of the bull run just months ago, traders are sitting on unrealized losses of 17% — the most since the pit of the last Bitcoin bear market in December 2022.


“In this same tone, Bitcoin traders are now operating with negative margins, and would only realize losses if they continue to sell. Trader’s unrealized margins are now -17%, the most negative since shortly after the FTX exchange collapse in November 2022,” the report continued.“Prices have typically bottomed-out when trader’s margins touch extremely negative levels as seen currently (red circles).”Bitcoin trader realized price vs. profit/loss margin (screenshot). Source: CryptoQuant


An accompanying chart compared traders’ current realized price — their aggregate cost basis — to unrealized profit margins.Bitcoin miners keep up sales


CryptoQuant additionally noted that miners remain in a “capitulation” phase, with operators likewise struggling to break even following April’s block subsidy halving.


Related: BTC price risks ‘double top’ — 5 things to know in Bitcoin this week


As Cointelegraph reported, smaller miners, in particular, have been seen to quit the network amid a low hash price, taking hashrate lower.


“Large-size miners have sold about $300M since June 20, while mid-size miners have unloaded around $500M on a cost-basis,” the report now confirms.Bitcoin realized cap (screenshot). Source: CryptoQuant


In a July 9 post on X, CryptoQuant CEO Ki Young Ju calculated that crypto markets could be “boring for the next 2-3 months.”


“Stay long-term bullish but avoid excessive risk,” he suggested.


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Bitcoin Price# Bitcoin Mining# Markets# Bitcoin TraderAdd reaction

News Feed

Fantom Surpasses Binance Smart Chain as the Third-Largest Defi Blockchain
Fantom Surpasses Binance Smart Chain as the Third-Largest Defi Blockchain The total value locked (TVL) in decentralized finance (defi) protocols has lost ​​6.8% durin
Central African Republic Token Sale off to Slow Start — $1.26 Million Raised in Under 5 Days
Central African Republic Token Sale off to Slow Start — $1.26 Million Raised in Under 5 Days The Central African Republic’s token sale appeared to have gotten to a slow st
While His Digital Trading Cards Tumble in Value, Trump Says His ‘Cute’ NFTs Were About the Art
While His Digital Trading Cards Tumble in Value, Trump Says His "Cute" NFTs Were About the Art After climbing to a high of 0.79 ether on Dec. 17, 2022, Donald Trump’s non-fungibl
LBank Exchange Lists NBL (Nobility)
LBank Exchange Lists NBL (Nobility) press release PRESS RELEASE. INTERNET CITY, DUBAI – LBank Exchange, a global digital asset trading platform, will list NBL on September 15
Software engineer sentenced to three years in prison for Nirvana hack
Derek Andersen5 hours agoSoftware engineer sentenced to three years in prison for Nirvana hackShakeeb Ahmed was a technical lead for Amazon when he hacked smart contracts on at least two DEXes.6295 Total views2 Total sha
Citrea raises $2.7M in seed funding to launch Bitcoin ZK-rollup
Jesse Coghlan5 hours agoCitrea raises $2.7M in seed funding to launch Bitcoin ZK-rollupChainway Labs’ ZK-rollup project Citrea secured initial funding to bring the solution to market, which could allow for NFTs and blo
US Senator Urges Regulators to Increase Scrutiny on Crypto as It Risks Undermining Sanctions Against Russia
US Senator Urges Regulators to Increase Scrutiny on Crypto as It Risks Undermining Sanctions Against Russia U.S. Senator Elizabeth Warren is worried that “cryptocurrencies r
South African Crypto Investment Company Issued Cease And Desist Order In Texas
South African Crypto Investment Company Issued Cease And Desist Order In TexasThe Texas State Securities Board (TSSB) issued a cease and desist order Wednesday against on Mirror Tra
Tom Blackstone5 hours agoBase launches mainnet bridge UI for end users, sets Aug. 9 for official launchCoinbase’s Base network began onboarding end users through a bridge UI, and the team announced Aug. 9 as the platfo
Konami’s Castlevania Anniversary NFT Sale Raises Over $160K
Konami’s Castlevania Anniversary NFT Sale Raises Over $160K Konami, a Japanese game developer and software publisher, raised more than $160K in its first foray into the non-fungi
Cardano Price Prediction: Analyst Says 80-90% Correction Is Over With 100% Jump Imminent
Este artículo también está disponible en español. The Cardano pricehas faced severe downward pressure compared to other cryptocurrencies in the past few weeks. ADA recent
Crypto Exchange Coincoinx to Launch Crypto to Fiat Payments App in Venezuela
Crypto Exchange Coincoinx to Launch Crypto to Fiat Payments App in Venezuela Coincoinx, a cryptocurrency exchange, will reportedly launch a service that will allow users to skip tr