Some major cryptocurrencies, like Bitcoin (BTC), are currently short on bagholders — investors who are currently in a losing position. Other major altcoins, however, are absolutely stacked full of losers.
As of yesterday (August 29, 2019), Bitcoin (BTC) has 75 percent of its addresses in a profitable position — according to the blockchain analytics platform IntoTheBlock.
Even more impressive is Bitcoin Cash (BCH), which currently has 87 percent of its addresses in the money.
Chainlink (LINK) is teetering on the edge between winners and losers, with an even 50 percent of its addresses in profit.
Some altcoins, however, are absolutely rekt.
For any address with a positive balance, ITB identifies avg price at which tokens were acquired, indicating if the address is at profit or loss.
Metrics as of today
Addresses at profit:#BTC 75%#BCH 87%#LINK 50%Addresses at loss:#ETH 80%#LTC 62%#ADA 80%#DASH 79%#ZEC 99% pic.twitter.com/dDilW2t8sD
— intotheblock (@intotheblock) August 29, 2019
Altcoin Losers
Here are the major altcoins with the most addresses in a losing position:
- Ethereum (ETH) — 80 percent of all addresses are at a loss.
- Litecoin (LTC) — 62 percent of all addresses are at a loss.
- Cardano (ADA) — 80 percent of all addresses are at a loss.
- Dash (DASH) — 79 percent of all addresses are at a loss.
- ZCash (ZEC) — 99 percent of all addresses are at a loss.
Heavy Altcoin Bags
The statistics provided by IntoTheBlock have broader ramifications in the cryptocurrency market — particularly for those who are looking to trade rather than invest long-term.
The more addresses are in a losing position, the more ‘bagholders’ are looking to either cut their losses, break-even or sell at the first sign of profit as the price increases. This, in theory, means that there will be more selling pressure on the way up and explosive gains would be limited.
On the flip side of the equation, Bitcoin and other cryptocurrencies with substantially more addresses in profit suggest that there will be less resistance if and when price increases.
In the case of the market-leading cryptocurrency, it is clear that many weak hands were shaken out of the market in 2018 after the bubble popped and that value was transferred into buyers at lower levels. With more investors/traders in profitable positions, there is less pressure to sell Bitcoin at the price increases — as there is less desire to cut losses or break even.
What do you think of altcoins with many bagholders? Let us know in the comments below!