bitcoinlfg

Tag: Loss

  • 68% of Bitcoin supply in loss after BTC price drop

    68% of Bitcoin supply in loss after BTC price drop

    • Bitcoin supply in loss has risen to 68%, with 6.67 million BTC under water water at current spot price.
    • Indeed, on-chain data shows 2.71 million BTC has fallen into loss as Bitcoin price dropped from the $31k local top.
    • With sell-side risk ratio approaching its all-time lows, Glassnode analyst James Check says BTC could see a big move to either side.

    Bitcoin’s price has dropped about 14.6% since rejecting at the local top of $30.9k, and the result has been a sharp rise in the total amount of supply in loss.

    The leading cryptocurrency’s current spot price is around $26.4k, after the week was spent in a tight range below the key resistance level of $27.6k. Although Bitcoin retested levels above $28k multiple times this month, the drawdown below $27k has bulls staring at a potential dip to support at $25k or lower.

    But even as this outlook materializes, about 2.71 million BTC has drifted underwater. The BTC supply in loss, according to data shared by on-chain analytics platform Glassnode, is equivalent to about 14% of the benchmark crypto’s circulating supply.

    “This raises the total supply in loss across the aforementioned period from 3.96M to 6.67M BTC, a 68.4% increase,” Glassnode noted.

    $45k or $20k? Analysts weigh in on BTC price movement

    Earlier this week, Glassnode lead analyst James Check said Bitcoin could see a “big move” in coming weeks amid seller exhaustion. Pointing to on-chain-data, Check explained:

    “Bitcoin Sell-side Risk ratio is approaching all-time lows. This indicates that investors are reluctant to spend coins which are in profit, or loss within the current price range. This usually occurs when sellers are exhausted on both sides, suggesting big moves are coming.”

    On Wednesday, JPMorgan lead strategist Nikolaos Panigirtzoglou said Bitcoin could rise 25% in the next 12 months. In a note to clients, Panigirtzoglou highlighted the price of gold rallying to a new multi-year high above $2k as the potential lead for BTC to hit $45k.

    According to the analyst, Bitcoin and gold have often traded in sync. Bitcoin’s upcoming halving will also play a role in ticking up prices of the digital asset. Recently, analysts at Standard Chartered predicted a 70% gain for BTC price, outlining the $100k as a target.

    Share this article
    Categories
    Tags



    Source link

  • MicroStrategy BTC paper loss hits $1.3B but no plans to stop trading bitcoin

    MicroStrategy BTC paper loss hits $1.3B but no plans to stop trading bitcoin

    • MicroStrategy registered $34 million in its first-ever bitcoin sale.
    • The company registered a paper loss of over 1 billion in 2022.
    • MicroStrategy made its first bitcoin purchase in August 2020.

    Despite making a paper loss of about $1.3 billion in 2022, MicroStrategy’s chief financial officer, Andrew Kang, said that the company will continue trading bitcoin. During a presentation for the Q4 2022 financial results webnier, Kang said:

    “We may consider pursuing additional transactions that may take advantage of the volatility in Bitcoin prices, or other market dislocations that are consistent with our long-term Bitcoin strategy.”

    The company’s stand on digital currencies comes at a time the crypto market is witnessing considerable recovery from last year’s plunge although it is not clear if digital currencies will ever reclaim their previous highs.

    Microstrategy bitcoin investment

    Microstrategy made its first bitcoin purchase in August 2020 acquiring 21,454 BTC in what it described as a “capital allocation strategy.” The company has been accumulating bitcoins since then and by December 24 2022 it had as much as 132,500 BTC worth $4.027 billion according to Microstrategy bitcoin statistics on the Buy Bitcoin Worldwide website.

    In the presentation on February 2023, Kang confirmed that Microstrategy holds 132,500 bitcoin that are worth about $1.84 billion as of Dec. 31, 2022.

    In the last quarter, MicroStrategy made a loss of $34 million after making its first-ever Bitcoin sale. The company made the decision to sell some of its bitcoins to recoup some tax losses.

    Microstrategy co-founder Michael Saylor said Bitcoin is one of the most important benchmarks that it uses to measure its stock performance against. He said that the company’s stock has risen by 117% since August 2020 compared to the bitcoin price which has risen by 98% in the same period.

    In an interview with a popular news outlet, Saylor said:

    “The only real safe haven for an institutional investor is Bitcoin. Bitcoin is the only universally acknowledged digital commodity, and so if you’re an investor, Bitcoin is your safe haven in this regard.”

    Share this article
    Categories
    Tags

    Source link

  • Tesla saw a net loss of $140 million on its Bitcoin in 2022

    Tesla saw a net loss of $140 million on its Bitcoin in 2022

    • Tesla recorded gains of $64 million and impairment loss of $204 million.
    • The company has revealed it sold 75% of its Bitcoin holdings, and held BTC worth about $184 million as of 31 December 2022.
    • The electric vehicle maker bought Bitcoin worth $1.5 billion in 2021.

    Tesla has revealed that the company sold most of the Bitcoin it purchased in 2021, and suffered a significant loss on the digital assets it currently holds during the 2022 crypto crash.

    In its Form 10-K filing with the US Securities and Exchange Commission (SEC) on Tuesday, 31 January, Tesla disclosed that it gained $64 million from its digital assets holdings when converting them into fiat currency. 

    However, according to the filing, the electric car maker’s Bitcoin bet also included a $204 million impairment loss for the year ending 31 December 2022. 

    All the gains recorded during the year were offset by the net impairment loss, which resulted from Tesla’s move to restructure its operations around the asset. This means the company reported a net loss of $140 million on its crypto trading in 2022. 

    “During the years ended December 31, 2022 and 2021, we recorded $204 million and $101 million of impairment losses on such digital assets, respectively. During the years ended December 31, 2022 and 2021, we realized gains of $64 million and $128 million, respectively, in connection with converting our holdings of digital assets into fiat currency,” the company reported.

    Tesla has sold 75% of its Bitcoin

    Elon Musk’s company revealed that it received or purchased an “immaterial amount” of crypto last year. The tech giant plashed $1.5 billion when buying Bitcoin in 2021. 

    As of 31 December, 2022, Tesla had sold roughly 75% of its Bitcoin. Per the filing, that left the company with around $184 million worth of digital assets as of the end of last year, down from $1.26 billion at the end of 2021.

    While the fair market value BTC held as at 31 December 2021 was close to $2 billion (after Bitcoin price soared to highs of $69,000), the company’s total crypto holdings at the end of 2022 had a fair market value of approximately $191 million.

    Notably though, that value could be much high given the price of Bitcoin has soared nearly 40% year-to-date. The company’s stock (think the Bitcoin vs. Tesla stock comparison) has also soared over the past 30 days, with TSLA up nearly 56% YTD on Tuesday morning.

    Share this article
    Categories
    Tags

    Source link

  • 4 in 5 SHIB Holders Are at a Loss

    4 in 5 SHIB Holders Are at a Loss

    According to a study by IntoTheBlock, 22% of Shiba Inu (SHIB) holders are in profit at the moment. A whopping 77%, or 4 in 5 SHIB holders, are facing losses, while only 1% have broken even.

    The data also shed light on the holding time of the Shiba Inu tokens. According to IntoTheBlock, 63% of holders purchased SHIB in the last 12 months. Shiba Inu has been falling after it attained its ATH (all-time high) in October of 2021, one year ago. Hence it is not surprising that most of the holders are at a loss.

    However, most of the circulating SHIB supply, around 81% of it, is in the hands of a few. And these whales are still in the money. Nonetheless, they could tank SHIB’s price if there was a sell-off.

    Will Shiba Inu rise anytime soon?

    The broader crypto markets breathed a sigh of relief this morning as most major tokens witnessed a much-needed spike. Bitcoin (BTC) crossed the $20k barrier, while Ethereum (ETH) turned out to be one of the biggest gainers with a 10% surge. Shiba Inu too surged by 4.2% in the last 24 hours.

    Nonetheless, the markets are still bearish. For a proper bull rally, the general market would need to change direction. Moreover, the global economic slump has further weighed down on crypto.

    However, Shiba Inu has a host of launches planned for this year, which have the potential to raise the token from its slumber. The Shibarium layer-2 network is one of the most anticipated launches of the year. With it, many expect SHIB prices to rally upwards. Moreover, layer 2 might have its own burn mechanism, which would further help in pushing SHIB prices. Moreover, SHIB has enjoyed a plethora of listings this year. Just yesterday, the token was listed in the US branch of Bitstamp.

    At press time, Shiba Inu (SHIB) was trading at $0.00001042, up by 2.4% in the last week.

    Source link