Crypto Market Cap Echoes March 2020 ‘Black Swan’ Crash – New Research

The

crypto market cap

for Bitcoin (BTC) is seeing a recovery from the “black swan” event of March 2020, which was rivaled only by the COVID-19 crash, according to data. CryptoQuant’s Quicktake post on Sep. 7 showed a significant rise in unspent transaction outputs (UTXOs) that resulted in losses.

The

crypto investor

community is now speculating whether this is the beginning of a

wonderland time crypto

for the market, or if it is just a

crypto buy the rumor sell

situation. With the

crypto current

market situation being as it is, it is difficult to predict what will happen to the

crypto btc

prices, especially with

crypto harmony one

and

black rock crypto

being the major players in the game.

CryptoQuant: Bitcoin UTXOs in Loss “mirror” March 2020

The current BTC price may be causing unease among crypto investors, but the on-chain data looks interesting.

UTXOs are the remaining BTC after a transaction is completed. CryptoQuant’s UTXOs in Loss metric monitors when a lot of them are worth more than when they were originally bought.

Currently, there are more of these UTXOs in loss compared to their original acquisition price than at any time since March 2020.

Back then, BTC/USD fell by 60%, reaching its lowest levels since March 2019, which were never seen again.

Taking into account the current data from UTXOs in Loss, CryptoQuant contributor Woominkyu suggested that, just like in March 2020, Bitcoin may be experiencing, or already recovering from, a selling event.

He said:

In percentage terms, 38% of UTXOs were in loss at the end of August, a figure last seen in April 2020.

“When a lot of UTXOs are in loss, investors might be more inclined to sell, signaling market anxiety. On the other hand, when most UTXOs are profitable, it reflects a positive outlook and a stronger holding sentiment among crypto investors,” Woominkyu added.

Underwater Bitcoin speculators grow

The crypto market cap has been stuck in a narrow range, with no clear direction for BTC/USD prices.

Data on the cost of buying Bitcoin reveals that short-term investors are in the red if BTC/USD drops below $27,000.

Nevertheless, there has been no sign of capitulation on the crypto market yet.

Black Rock Crypto and other crypto investors are still buying the rumor and selling the news, hoping to benefit from the crypto harmony one day.