As AZCoin News reported, Bitcoin price bottomed out at $ 6,700 on November 22. This is the lowest level in the past six months. However, this number is still extremely high compared to eight years ago. And a majority of bitcoin hodlers are making money on their investments despite the cryptocurrency’s downtrend.
Bitcoin hodlers are ‘in the money’
Looking back at 2011, the time Bitcoin was so unfamiliar to most of us. And it was also the time when Bitcoin first conquered a record of $1 for the first time, after climbing from a few cents.
If you follow the market long enough, you will figure out that there are some periods of extremely profitable, especially when it came to the bear market in 2011. Specifically, in November 2011, the Bitcoin price dropped to the lowest level of $ 1.91 per coin, after a month of collapse from over $30.
The depths of the 2011 bear market was 8 years ago this week. It was bitcoin’s worst: from $31.91 in June, to $1.91 in November. That’s -94%.
That was a depressing time. It felt like the world could just forget about Bitcoin. But it didn’t: https://t.co/KvIIAbf4z0 pic.twitter.com/kkhflfR911
— Dan McArdle (@robustus) November 22, 2019
Over the years, Bitcoin’s price has been under constant pressure. From the extreme influence of Poloniex and Mt. Gox to a very diverse futures market, it also expanded into significant exchanges. And these price pressures continuously remind us that the bear market tends to reverse when conditions are favorable. In 2011, BTC moved as close as possible to a ‘capitulation’ and ‘going down to zero,’ after erasing more than 94% from its price.
54% of BTC wallet addresses is still “profitable”
Bitcoin fell to $6,968 during European trading hours Friday – the lowest level in six months. Despite the sharp drop, 15.31 million or 54 percent of bitcoin addresses are still ‘in the money,’ according to IntoTheBlock. However, ‘in the money’ means if the current price of bitcoin is higher than the average rate at which coins were acquired or sent to an address.
Red week for the crypto-asset market↘️
Here’s an update on the % of holders making or losing money at the current price for the top cryptocurrencies
Addresses at profit$BTC 54%$BCH 85%$BSV 94%$LINK 48%
Addresses at loss$ADA 87%$LTC 83%$ETH 87%$ETC 81%$BAT 68% pic.twitter.com/2dH5pHGhBz
— intotheblock (@intotheblock) November 22, 2019
The coins with the highest number of “profitable” wallets are Bitcoin (54%), Bitcoin Cash (85%), Bitcoin SV (94%), and LINK (48%). Also, the coins that have a large number of wallets are ADA, Litecoin (LTC), and Ethereum (ETH).
Besides, BTC is still quite far away from the capitulation period (i.e., a milestone of investors willing to withdraw quickly from the market and eliminate benefits). Selling pressure can reduce and cool the market.
Read more:
- Bakkt Continues To Set A New Record With More Than 2728 Bitcoin Futures
- Bitcoin Price Drops After Difficulty Adjustment Increased By +2%, Will Reverse The Trend?