The percentage of Bitcoin Unspent Transaction Outputs (UTXOs) in profit has plummeted to 68.5%, the lowest level observed this year.

Historically, such a drop has preceded significant price surges; for example, a similar decline in 2023 was followed by a remarkable 273% increase in Bitcoin’s price.

Currently, the Fear and Greed Index has sunk to an Extreme Fear level of 22%. This index hit a low of 17% when Bitcoin was priced at $49K and fell further to 10% during the mining restrictions in China. The lowest recorded drop was 6% amid the Luna crash.

Bitcoin’s price decline is attributed to a lack of demand growth, with all key valuation metrics indicating bearish conditions. Key price levels to monitor include $55.5K, which is the lower band of the trader’s on-chain realized price.

Recently, a significant whale transferred 1,000 BTC, worth approximately $55.36 million, to Binance, realizing a loss in just 25 minutes. This whale had previously withdrawn 2,322 BTC from Binance between August 29 and September 3 at an estimated cost of $136 million, now showing an estimated loss of $6.94 million (about -5.1%).

Bitcoin Transaction Surges 100% In The Past Month 

The number of Bitcoin transactions between $10 and $100 has surged by 100% in the past month, now representing 50% of all Bitcoin transactions.

Investors who bought Bitcoin between $47K and $64K are under pressure, with only 27.6% currently in profit. This group mostly consists of short-term holders who may increase selling pressure if the market continues to decline.

Moreover, Bitcoin spot ETFs experienced a total net outflow of $211 million on September 5, marking seven consecutive days of outflows. Grayscale’s GBTC saw $23.22 million exit, Fidelity’s FBTC experienced a $149 million outflow, and Bitwise’s BITB had $30 million withdrawn. The current net asset value of Bitcoin spot ETFs stands at $50.73 billion.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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