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Less Than 1% Of Bitcoin Investors Experiencing Loss After BTC Surpasses $100,000

According to recent on-chain data, fewer than 1% of Bitcoin holders are currently at a loss following the cryptocurrency's price surge beyond the $100,000 mark.

Minimal Bitcoin Addresses Underwater at Current Valuation

In a recent update on X, the market analysis platform IntoTheBlock detailed the profit and loss distribution among Bitcoin investors after the cryptocurrency's recent price rally.

As Bitcoin edges closer to its all-time high, it is unsurprising that only a small fraction of investors remain in a loss position. The chart below, shared by the analytics firm, illustrates the price ranges at which these few underwater addresses acquired their Bitcoin.

Bitcoin Profit-Loss Distribution

In the graph, the dot size represents the amount of Bitcoin purchased within each price range. Notably, the dots associated with prices below the current level are relatively small.

Overall, these price ranges encompass approximately 380,000 addresses. While this number may appear significant, it accounts for less than 1% of the total Bitcoin holders, given the extensive size of the user base.

In on-chain analysis, understanding the cost basis levels of addresses is crucial, as investors are more likely to make moves when their profit or loss status is about to change.

Investors who were previously in loss might consider selling when their break-even point is reached, fearing a potential decline in price that could diminish their recovery chances. Such selling activity could impact Bitcoin's price if a large number of investors decide to sell simultaneously.

However, the current price levels have a minimal number of addresses underwater, suggesting that the resistance from panic selling might be limited.

That said, overcoming these levels may not be effortless for Bitcoin. When the market's profit-loss balance skews heavily towards profits, another significant risk emerges: profit-taking selloffs. The more the market tilts towards profit, the higher the likelihood of a large-scale selloff.

With the majority of Bitcoin investors currently in a profit position, some are expected to sell. The critical question remains whether there will be sufficient demand to counteract this selling pressure.

Bitcoin Price Update

As of now, Bitcoin is trading around $97,900, marking a 3% increase over the past week.