Bitcoin’s price drop affects 2.7 million BTC in this manner

• Bitcoin’s recent price drop led to increased supply in loss, with 2.71 million BTC affected.
• The press time MVRV showed an undervaluation of BTC, as the price slightly declined.

Following its surge to the $30,000 price range earlier this year, Bitcoin [BTC] experienced a subsequent decline that caused a portion of its supply to incur losses. A recently released report by Glassnode provided detailed insights into the number of BTC affected by this price drop and the corresponding percentage of loss incurred.

Read Bitcoin’s [BTC] Price Prediction 2023-24

Bitcoin supply in loss increases

On 11 April, the price of Bitcoin skyrocketed to the coveted $30,000 range and held steady for over a week. However, the value gradually declined, resting in the $26,000 range at press time. A recent chart released by Glassnode illustrated the consequences of this price drop, resulting in some BTC holders experiencing losses.

Source: Glassnode

The significant downward movement of -14.6% from the local peak of $30,900 to the current price of approximately $26,400 has led to 2.71 million BTC being in an unfavorable position, equivalent to 14% of the circulating supply.

This has caused the total amount of BTC in a loss to rise from 3.96 million to 6.67 million BTC during this period, marking a substantial increase of 68.4%.

Bitcoin NUPL paints a more accurate picture

The Net Unrealized Profit and Loss (NUPL) measures the overall profitability held within Bitcoin’s coin supply. Analyzing the Bitcoin NUPL chart reveals that it began its upward trend above the zero line in January.

As of the press time moment, there were indications of a slight downtrend, although the NUPL remained above zero and displayed a yellow signal. Its value stood at 0.26, suggesting a decrease in unrealized profit despite the recent market decline.

Source: Glassnode

Furthermore, there was no significant difference when comparing the NUPL with its adjusted counterpart. The adjusted NUPL (aNUPL) is calculated by subtracting the inert BTC supply from the circulating supply. As of this writing, the aNUPL also hovered around 0.26.

60-day MVRV and price trend

Examining the 60-day Bitcoin Market Value to Realized Value ratio (MVRV) revealed that it was undervalued. As of this writing, BTC was positioned below the zero line, approximately at -4.6%. This value suggested that holders who acquired Bitcoin within those 60 days were currently experiencing losses. 

Source: Santiment

How much are 1,10,100 BTCs worth today?

Furthermore, the press time price of Bitcoin placed it in the undervalued zone, hinting at a potential price increase soon. Bitcoin was trading at around 26,760, exhibiting a minimal loss of less than 1%.

While it maintained this price range, any substantial decline could result in an increase in the number of BTC supply in loss. Conversely, a significant uptrend in price would amplify the number of BTC supply in profit.