Bitcoin’s on-chain realized profit metrics have fallen into negative territory following its price drop below $90,000, reminiscent of conditions before the last bear market. On-chain realized profit indicates how much investors have earned or lost on their Bitcoin holdings, and its negative status signals growing concern in the market. While price fluctuations are common in the cryptocurrency market, falling below $90,000 marks a significant milestone, as it is considerably lower than Bitcoin’s recent peak prices. As the largest and most well-known cryptocurrency, Bitcoin experienced multiple price swings in 2021 and 2022, with its declines often influencing the broader crypto market. Reports from analytical firms like CryptoQuant suggest that on-chain metrics provide deeper insights into market sentiment and investor behavior. The shift to negative profits implies that holders are selling their assets at a loss, highlighting market uncertainty. Given the unpredictable nature of the crypto market and global economic factors, further volatility in Bitcoin’s price is likely. Investors are advised to exercise caution and closely monitor market conditions, as negative profit phases often precede additional market pressure. Such changes in Bitcoin’s price can also impact global financial markets and other cryptocurrencies, making careful analysis essential.
Source: decrypt
