23 percent of Bitcoin portfolios in the minus

The negative mood in the crypto market is starting to affect more and more investors. According to data of analysis platform CryptoQuant, the percentage of Bitcoin portfolios making a profit has fallen from 99 percent to 76 percent since January.

That means 23 percent of investors are currently experiencing losses on their Bitcoin investments. This level was last reached in September. The data also shows that the gains from the so-called Trump rally have now completely evaporated. At the beginning of the week, Bitcoin went down significantly again, and the altcoin market also corrected significantly.

Not only CryptoQuant is signaling this negative trend. The Fear and Greed Index, which measures sentiment in the market, is at an extreme fear level of 20 points. Last week it was 33 points, and in January the index was as high as 84.

In addition to macroeconomic factors, such as the impact of the trade fight under Trump, weak U.S. labor market data also gave the crypto market an additional blow. Volatility in the Bitcoin exchange rate is expected to continue.

Also on the agenda this week is the release of U.S. inflation data. Analysts expect a slight decline to 2.9 percent year-on-year. This could be an important indicator of the future development of Bitcoin and the broader crypto market.

One possible source of new liquidity for Bitcoin and altcoins is the return of several market makers. Why they withdrew earlier and what strategy they are employing in their comeback is being closely watched by analysts.