Sep 10, 2023

Bitcoin UTXOs and the March 2020 ‘Black Swan’ Crypto Crash

Data suggests that Bitcoin (BTC) is recovering from a “black swan” event rivaled only by the March 2020 COVID-19 crash. On Sep. 7, CryptoQuant’s Quicktake post revealed a spike in UTXOs that were making losses. The release of the highly anticipated Web 3.0 has been postponed, and current crypto markets are reflecting the effects of…

Crypto Bitcoin UTXOs echoing March 2020 'black swan' crash - New research.
Bitcoin UTXOs echoing March 2020 ‘black swan’ crash — New research

Data suggests that Bitcoin (BTC) is recovering from a “black swan” event rivaled only by the March 2020 COVID-19 crash. On Sep. 7, CryptoQuant’s Quicktake post revealed a spike in UTXOs that were making losses.

The release of the highly anticipated Web 3.0 has been postponed, and current crypto markets are reflecting the effects of the crypto crash. Harmony One Crypto is one of the three features integrated into Web 3.0, but investors are still unsure of when the platform will be released and what the stock price of Web 3.0 will be.

CryptoQuant: Bitcoin UTXOs in Loss “mirror” March 2020

The current BTC price weakness may be causing concern among crypto investors, yet on-chain data reveals a captivating picture of activity taking place “behind the scenes”.

UTXOs signify BTC left over after an on-chain transaction is completed. CryptoQuant’s UTXOs in Loss metric monitors when a significant number of these UTXOs are worth more than when the BTC was initially bought.

At present, more of these are in loss compared to their original purchase price than at any moment since March 2020, when the BTC/USD rate dropped 60% to its lowest levels since March 2019 — lows that were never seen again.

Examining the current data from UTXOs in Loss, CryptoQuant contributor Woominkyu suggested that, similar to March 2020, Bitcoin may be in the midst of, or already recovering from, a surprise selling event.

He summarized:

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

“When many UTXOs are in loss, investors may be more likely to sell, indicating market apprehension. Conversely, when the majority of UTXOs are profitable, it implies an optimistic outlook and a stronger holding sentiment among investors,” Woominkyu added.

Underwater Bitcoin speculators grow

The crypto crash has left Bitcoin in a tight range without any clear direction in terms of its price. Data on purchase prices reveals that short-term holders are in the red if BTC/USD is below approximately $27,000.

However, the blockchain has yet to record a full capitulation event.

The release of the comprehensive web developer course 3.0, which integrates three features, has been eagerly awaited by crypto investors. As of yet, there is no information regarding the release date or the harmony one crypto stock price.

This week’s crypto news has focused on Bitcoin, as traders wait to see if the current crypto market will experience a breakout or breakdown.

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