The cryptocurrency market is still struggling, with most of its assets, including the largest one by market capitalization – Bitcoin (BTC), now trading in the red. However, some crypto analysts believe the situation has a silver lining.
As it happens, 50% of Bitcoin holders are at a loss right now, which means that the market could be getting closer to the bottom, as observed by eth_whalehunter, an analyst at the crypto analytics platform CryptoQuant, on October 11.
Analyzing Bitcoin’s accumulation behavior during the crash of March 2020, the expert said that the loss percentage between 40% and 50% is a “good accumulation range,” but between 50% and 60% is actually even better for the long run:
“The higher the loss percentage, the closer we are to the bottom. Buying small amounts of BTC between 50% and 60% will be incredibly profitable in the long run.”
Percentage of Bitcoin holders at a loss. Source: CryptoQuant Addressing the comments under CryptoQuant’s tweet of the analysis that suggests the Bitcoin loss percentage could go even higher, eth_whalehunter assured that “the highest BTC loss percentage in 2018 and 2019 was 60%,” adding that:
“Not saying it can’t go higher, but those are good odds. Some alts definitely have a better chance of outperforming BTC.”
Bitcoin volatility ahead?
Meanwhile, certain indicators are suggesting that Bitcoin could be in for major volatility very soon. One of them is a significant cooldown in the maiden crypto’s volatility which has recently dropped under 25, which is even below that of the Dow Jones index.
Others are the upcoming Consumer Price Index (CPI) and Producer Price Index (PPI) reports that are due to be published this week and set the atmosphere for the digital finance (DeFi) asset’s future price movements, as Finbold reported.
As things stand, Bitcoin is trading at $19,081, which represents a drop of 1.75% on the day, as well as a 4.25% decrease across the previous seven days.
Bitcoin 7-day price chart. Source: CoinMarketCap
At the same time, the market capitalization of the flagship digital asset currently stands at $366.07 billion, according to CoinMarketCap data.
