With the currency trading at around $61,000, down about 50% from its record highs, and a new break below its 200-week moving average, losses are accumulating quickly for a growing share of its holders, according to Bloomberg News on Wednesday.
For the first time since late 2022, more than 50% of coins are trading below their purchase price, according to Vitli Lundy of K33 Research.
The percentage was only 30% a month ago. This is the latest indication of the pressure on the market, which has witnessed a sharp decline for several months.
Crypto-asset analysts have warned that Bitcoin’s current decline may not have come to an end yet, although the declines are still less severe compared to previous down cycles in the cryptocurrency market.
The head of international portfolio management at Wave Digital Assets indicated that the market witnessed a major reversal in expectations, noting that Bitcoin lost its positive correlation with the US stock markets as liquidity moved towards artificial intelligence and technology stocks.
He added that funds leaving cryptocurrencies are not expected to automatically return to the market even if stock markets decline.
Although Bitcoin has fallen by about 50% from its highest levels, this remains less than declines that exceeded 80% during previous downturns.
