Recent data from Blockchain shows that less than 1% of Bitcoin holders are currently suffering losses after the asset’s price surged above $100,000.
Despite the price increase, a portion of Bitcoin addresses remain underwater.
In a recent update on X, market intelligence platform IntoTheBlock examined the distribution of profits and losses among Bitcoin users following the cryptocurrency’s recovery.
As BTC approaches all-time highs, the number of investors in losing positions is expected to be minimal. A chart provided by the analytics company shows the price range in which the remaining underwater addresses acquired the coins.
Collectively, this range represents the acquisition cost of approximately 380,000 addresses, which despite this seemingly high number, represents less than 1% of all Bitcoin holders.
Understanding the cost basis level of an address is important in on-chain analysis, as investors tend to make decisions based on profit-loss status.
Prior to the retest, holders in losing positions may consider selling for fear of a possible future price decline, which could lead to increased selling pressure. However, the fact that there are currently few addresses in front of the asset suggests that resistance to panic selling is limited.
Most investors are now in a position to make a profit, but as market imbalances grow, so does the risk of large sell-offs due to profit-taking. It remains unclear whether demand will be able to respond to this selling pressure in the near future.
Bitcoin price update
Bitcoin is currently trading around $97,900, up 3% from last week.
