Bitcoin has seen a sharp rise in the total amount of supply in loss in recent weeks. According to on-chain analytics platform Glassnode, 68% of Bitcoin supply is now in loss, with 6.67 million BTC underwater at the current spot price. This means that over 2.71 million BTC have fallen into loss since the cryptocurrency’s price dropped from its $31k local top. The current spot price of Bitcoin is around $26.4k, after spending last week in a tight range below the key resistance level of $27.6k.
While this drop in price has caused concern among investors, Glassnode lead analyst James Check has suggested that it could lead to a big move in either direction. Pointing to on-chain data, Check explained that the Bitcoin sell-side risk ratio is approaching all-time lows. This indicates that investors are reluctant to spend coins that are in profit or loss within the current price range, usually indicating seller exhaustion on both sides and suggesting big moves are coming.
Other analysts have also weighed in on the potential movement of Bitcoin’s price. JPMorgan lead strategist Nikolaos Panigirtzoglou believes that Bitcoin could rise 25% in the next 12 months, potentially hitting $45k. He noted that the price of gold rallying to a new multi-year high above $2k could serve as a potential lead for Bitcoin to follow, given that Bitcoin and gold have often traded in sync.
However, some analysts are more cautious in their predictions. Standard Chartered’s analysts have predicted a 70% gain in Bitcoin’s price, outlining a target of $100k. While it remains to be seen what will actually happen with Bitcoin’s price in the coming weeks and months, the increased amount of supply in loss is certainly of concern to investors.