Some major cryptocurrencies, like Bitcoin (BTC), are currently short on bagholders — investors who are currently in a losing position. Other major altcoins, however, are absolutely stacked full of losers.

As of yesterday (August 29, 2019), Bitcoin (BTC) has 75 percent of its addresses in a profitable position — according to the blockchain analytics platform IntoTheBlock.

Even more impressive is Bitcoin Cash (BCH), which currently has 87 percent of its addresses in the money.

Chainlink (LINK) is teetering on the edge between winners and losers, with an even 50 percent of its addresses in profit.

Some altcoins, however, are absolutely rekt.

Altcoin Losers

Here are the major altcoins with the most addresses in a losing position:

  • Ethereum (ETH) — 80 percent of all addresses are at a loss.
  • Litecoin (LTC) — 62 percent of all addresses are at a loss.
  • Cardano (ADA) — 80 percent of all addresses are at a loss.
  • Dash (DASH) — 79 percent of all addresses are at a loss.
  • ZCash (ZEC) — 99 percent of all addresses are at a loss.

Heavy Altcoin Bags

The statistics provided by IntoTheBlock have broader ramifications in the cryptocurrency market — particularly for those who are looking to trade rather than invest long-term.

The more addresses are in a losing position, the more ‘bagholders’ are looking to either cut their losses, break-even or sell at the first sign of profit as the price increases. This, in theory, means that there will be more selling pressure on the way up and explosive gains would be limited.

On the flip side of the equation, Bitcoin and other cryptocurrencies with substantially more addresses in profit suggest that there will be less resistance if and when price increases.

In the case of the market-leading cryptocurrency, it is clear that many weak hands were shaken out of the market in 2018 after the bubble popped and that value was transferred into buyers at lower levels. With more investors/traders in profitable positions, there is less pressure to sell Bitcoin at the price increases — as there is less desire to cut losses or break even.

What do you think of altcoins with many bagholders? Let us know in the comments below!

Adam James

Adam is the Editor-in-Chief of BeInCrypto.com. He has been deeply involved in the cryptocurrency and blockchain industries for many years and previously served as the Editor-in-Chief of Bitcoinist.com. He regularly attends international Bitcoin and blockchain conferences. Adam earned his B.A. degree in English Language and Literature from Bloomsburg University of Pennsylvania in 2011. He also studied the Comparative History of Central, Southeastern, and Eastern Europe at Central European University.

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