• Bitcoin has seen a pullback since peaking around $23,900 yesterday.
• Santiment’s data highlights that yesterday was the largest profit-taking day for BTC since February 2021.
• The ratio between profit and loss transactions for Bitcoin was at a very high level during the past day.
What Caused Bitcoin to Pullback?
Bitcoin has seen a pullback since peaking around $23,900 yesterday. According to data from on-chain analytics firm Santiment, yesterday was the largest profit-taking day for BTC since February 2021.
What Is Measured by Profit/Loss Transaction Ratio?
The relevant indicator here is the „ratio of on-chain transaction volume in profit to loss,“ which measures the ratio between the daily volume being involved in profit-taking transactions and that involved in loss-taking ones. This works by looking through each coin’s on-chain history and noting its last transferred price compared to the current value of Bitcoin. If it is more than this value, then it is a profitable transfer, if less, then it is a loss taking transfer.
Highest Profit/Loss Ratio Since February 2021
When the ratio between these two volumes is greater than 1, it means there are more profit-taking transactions taking place on the network right now. On the other hand, values lower than 1 imply that loss-taking is dominant currently. As shown in an accompanying chart from Santiment’s Twitter account, the ratio between profit and loss transactions for Bitcoin was at a very high level during past day with more than 2.4 times as many profit-realizing transfers happening on the blockchain as compared to the loss-taking ones; this level of profit-taking is highest observed since February 2021 – approximately two years ago.
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Overall, while we can’t be sure exactly what caused Bitcoin’s latest pullback after hitting its all time high of nearly $24k yesterday; one possible explanation could be attributed to investors taking large scale profits off of its network – as per data from on chain analytics firm Santiment measuring maximum ‚profit/loss transaction ratios‘ since February 2021 – approximately two years ago when such levels were last observed.. In addition to this news readers can also take advantage of bonus offers like Wild Crypto’s 150% Welcome Bonus plus 100 Free Spins or check out how some lucky players have won huge amounts playing at BitStarz!