There are now more than 17.5 million Bitcoin wallets underwater with little faith in a rebound coming from analysts in the face of a surging dollar.
Bitcoin (BTC) hodlers are feeling the squeeze this week as repeated tests of lower levels spark increasing losses.
Data from on-chain analytics firm Glassnode shows more wallets are in the red as of Aug. 23 than at any time in the past month.
Over 17.5 million wallets in the red
Meanwhile, those who bought in recent weeks are underwater to varying degrees, as Bitcoin is at its lowest since the last week of July.
The extent to which investors added or created positions on the way to this month’s $25,200 highs is now becoming clearer — more BTC addresses are at an overall loss than at any time since July 23.
The increase in underwater addresses has been particularly pronounced since last week’s sudden price drop. At the time of writing, the seven-day moving average (MA) of wallets in the red sits at more than 17.5 million — an increase of 1.5 million over several days.
Additional statistics from monitoring resource Coinglass covering liquidations of positions on derivatives exchanges, meanwhile, point to the vast majority of pain being inflicted on Aug. 1, with subsequent price movements across the $21,000 mark being of little importance.
Aug. 19 sealed a total of $209.5 million in long position liquidations on exchanges — the most since June 13 — along with $30 million of short positions.
Dollar rises to pressure outlook
Turning to the immediate outlook, few were prepared to bet on a major renaissance in crypto markets.
Popular trader and analyst Rekt Capital highlighted Bitcoin’s first close below the key 200-week MA since July, and others noted risk assets faced resistance while the United States dollar broke higher.