Today, about half of all Bitcoin holders are in the red
One Man's loss is another Man's gain
Over the last 24hrs, the price of Bitcoin on various exchanges has been showing a decreasing momentum. Because of this, some are crying while others are smiling because of the opportunity to purchase the dip.
According to the Coin Market Cap listing, the price of BTC fell below $30k before recovering marginally. What is worse is that 21.68 million Bitcoin wallets are currently losing money, representing a slim majority compared to the 21.39 million profitable wallets. Approximately 2.88 million wallets are flat.
Historically, it has been uncommon for most Bitcoin holders to be out of money. It only happened once back in late 2011 and early 2012, during the first significant Bitcoin meltdown, when hackers attacked and plundered Mt. Gox, the world's largest crypto exchange, dropping Bitcoin's price from $17.50 to a cent.
Throughout 2014 and 2015, Bitcoin surged and fell irregularly, but there were multiple times when out-of-the-money Bitcoin holders made up the majority. It happened again in December 2018 and January 2019, as well as on March 16, 2020, following a sudden price crash that saw Bitcoin drop from intraday highs of almost $8,000 to $5,385.
Since the beginning of the month, there has been a large inflow of Bitcoin into exchanges, implying that investors are selling their holdings for cash or fiat-pegged stable coins. Nevertheless, the industry's more prominent participants are seizing the opportunity presented by falling pricing.
Investors are taking advantage of the market to trade exchange-traded Bitcoin products at reduced prices, as seen by net inflows of $40 million into crypto investment products over the last week. Meanwhile, price speculation has been rampant. Futures contracts, a sort of derivative, are used by investors to wager on whether the price of assets will rise or fall. Over the last week, a record $4 million was invested in short Bitcoin contracts