Bitcoin’s price performance is currently experiencing a significant downturn, similar to the crash caused by the COVID-19 pandemic in March 2020. On-chain data from CryptoQuant shows a surge in loss-making unspent transaction outputs (UTXOs), indicating that more BTC is currently in loss compared to its original acquisition price than at any time since March 2020. This suggests that Bitcoin may be facing a curveball selling event, similar to the Black Swan event of last year. The percentage of UTXOs in loss reached 38% at the end of August, a level not seen since April 2020. This could indicate market anxiety and a potential increase in selling pressure. However, there has yet to be a full capitulation event recorded on-chain. Bitcoin’s price remains stagnant, with no clear trend emerging. Short-term holders are experiencing losses when BTC/USD is below $27,000. It is important for investors to conduct their own research and exercise caution when making investment decisions.
Summary:
– Bitcoin’s price performance is similar to the crash caused by COVID-19 in March 2020.
– On-chain data shows a surge in loss-making UTXOs, indicating market anxiety.
– 38% of UTXOs were in loss at the end of August, a level not seen since April 2020.
– Short-term holders experience losses when BTC/USD is below $27,000.
– Investors should conduct their own research and exercise caution.
