- Bitcoin’s recent price drop led to increased supply at a loss, with 2.71 million BTC.
- The press time MVRV showed an undervaluation of BTC as the price fell slightly.
After rising to the $30,000 price range earlier this year, Bitcoin [BTC] experienced a subsequent decline that resulted in losses for part of the supply. A recently released report from Glassnode provided detailed insights into the number of BTC affected by this price drop and the corresponding percentage of loss incurred.
Read Bitcoin [BTC] Price Forecast 2023-24
Bitcoin supply in loss increases
On April 11, Bitcoin’s price skyrocketed to the coveted $30,000 range and held steady for over a week. However, the value gradually declined and remained in the $26,000 range at the time of writing. A recent chart released by Glasnode illustrated the consequences of this price drop, which caused losses for some BTC holders.
Source: Glassnode
The significant -14.6% downward move from the local peak of $30,900 to the current price of approximately $26,400 has left 2.71 million BTC in an unfavorable position, equivalent to 14% of the circulating supply.
This has caused the total amount of BTC in a loss to increase from 3.96 million to 6.67 million BTC during this period, a significant increase of 68.4%.
Bitcoin NUPL paints a more accurate picture
The net unrealized profit and loss (NUPL) measures the total profitability held within the Bitcoin coin supply. Analysis of the Bitcoin NUPL chart shows that it started its upward trend above the zero line in January.
As of going to press, there was evidence of a slight downward trend, although the NUPL remained above zero and showed a yellow signal. The value was 0.26, indicating a drop in unrealized earnings despite the recent market downturn.
Source: Glassnode
In addition, there was no significant difference when comparing the NUPL with its adjusted counterpart. The adjusted NUPL (aNUPL) is calculated by subtracting the inert BTC supply from the circulating supply. At the time of writing, the aNUPL was also hovering around 0.26.
60 days MVRV and price trend
Examination of the 60-day Bitcoin Market Value to Realized Value ratio (MVRV) revealed that it was undervalued. At the time of writing, BTC was positioned below the zero line, roughly at -4.6%. This value suggested that holders who bought Bitcoin within those 60 days were currently experiencing losses.
Source: Sentiment
How much are 1,10,100 BTC worth today?
Moreover, Bitcoin’s press price placed it in the undervalued zone, indicating a possible price hike soon. Bitcoin was trading around 26,760, with a minimal loss of less than 1%.
While it maintained this price range, any substantial drop could lead to an increase in the number of BTC deliveries being lost. Conversely, a significant increase in price would increase the number of BTC deliveries in profits.
