Bitcoin has been struggling to remain above the $8,000 support level in a hostile market where almost every signal indicates a bearish sentiment. The decreasing number of profitable holders on the network and a shocking 97 percent drop in large transactions spell trouble for the world’s largest cryptocurrency.
Bitcoin as a Currency
Bitcoin is a cryptocurrency. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.
Bitcoin has been one of the few cryptocurrencies where a majority of its holders didn’t lose money on their investment, but the insanely volatile price in the past few days has increased the number of addresses who lost money on Bitcoin.
The world’s largest cryptocurrency took a massive hit at the beginning of the week, despite most predictions anticipating a slow and steady price recovery. A massive sell-off triggered a drop of more than 4 percent in less than 24 hours, with Bitcoin now struggling to remain above $8,000.
Large transactions on the network have taken a huge hit. The number of transactions larger than $100,000 decreased by almost 35 percent in less than two days, while the total volume was slashed in half.
Despite more than two-thirds of addresses being in the money, the number of those whose balances are at a loss has increased in the past week has drastically increased.