A recent rise in profitability among crypto investors raises concerns that mass profit-taking could trigger sharp price drops.
Investors in Profit: Numbers and Concerns
Analysts, including Doctor Profit, stated that 90% of BTC investors, 98% of ETH investors, 92% of XRP investors, and 100% of BNB investors are in profit. This situation raises concerns as such high-level profits among market participants may lead to mass profit-taking and subsequent price declines.
Dynamics of XRP, BNB, and Solana
XRP is trading at $3, with 92% of its supply in profit. BNB, priced at $870, sees 100% of its tokens also in profit. Solana trades at $213, and 96% of its supply is profitable. Despite the high profitability, activity on the networks of BNB and XRP reflects different trends.
Liquidations in the Crypto Market
Amid the prevailing profitability, liquidations are still significant. Over the past day, more than 93,900 traders have been liquidated, totaling $261 million. Liquidations mainly occurred among long positions. Analysts note a disconnect in the market in light of such large liquidation figures, raising questions about overall market conditions.
With the current profitability levels among investors, there are potential risks for the cryptocurrency market as high profit levels may trigger price declines in case of mass profit-taking.
