Over the weekend, Bitcoin experienced a significant drop in price, falling below $60,000 due to rapid selling by major holders such as the German and US governments. This resulted in one of the largest drops seen for the cryptocurrency in the last two years, causing the market to lose billions of dollars. Despite this, Bitcoin holders are still showing major gains, with the majority of investors currently in profit despite the market crash.
Data from the on-chain tracker IntoTheBlock reveals that there are approximately 53.57 million Bitcoin holders worldwide. Of these investors, around 83% are still seeing profits even though BTC’s price has dropped below $60,000 and now sits above $56,000. This means that only around 17% of total BTC holders are not currently in profit.
Out of the 17%, 13% are experiencing losses as they purchased their Bitcoin when the price was higher than its current value. The remaining 4% are at breakeven, meaning they bought their coins around the current value and are neither gaining nor losing money at the current price. This indicates that about 44.61 million Bitcoin investors are still profiting from their positions, while 6.8 million are facing losses and approximately 2.16 million are at breakeven.
A growing trend is affecting long-term Bitcoin holders as average returns risk falling into losses for the first time in over a year. However, this situation may not be negative for the price, as historical data suggests that buying during such times can be beneficial. According to a Sentiment report, when Bitcoin’s 30-day and 365-day MVRV are in negative territory, it is usually a good time to buy.
Santiment notes that buying during these times can result in significant returns, with a potential increase of +132% if you had bought the last time both lines were in negative territory. Developments like these often indicate a good buying opportunity and can help determine the bottom of the market.
Despite the recent price drop, the majority of Bitcoin investors are still seeing profits in their positions. Long-term holders may be facing losses for the first time in over a year, but historical data suggests that this can be a good buying opportunity. It is essential for investors to monitor market trends and make informed decisions based on historical data and market indicators.
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