The recent weekend saw a significant drop in the price of Bitcoin, falling below the $60,000 mark. This drop was mainly attributed to rapid selling by major holders such as the German and US governments. The market saw billions of dollars in losses, marking one of the largest drops in the last two years. Despite this massive drop, Bitcoin holders are still experiencing substantial gains.
Data from the on-chain tracker IntoTheBlock revealed that there are approximately 53.57 million Bitcoin holders across the globe. Surprisingly, around 83% of these investors are still seeing profits despite the BTC price plummeting below $60,000 and currently hovering just above $56,000. This data indicates that only about 17% of total Bitcoin holders are not currently in profit. Within this group, 13% are facing losses due to purchasing their BTC coins at a higher price than the current value, while 4% are at breakeven.
While the majority of Bitcoin investors are still enjoying profits, there is a growing trend affecting long-term holders. A Sentiment report highlights that the average returns of Bitcoin long-term holders are at risk of falling into losses for the first time in over a year. Despite this, historical data shows that when the average long-term holder returns turn negative, it can be a good buying opportunity. Santiment suggests that when “Bitcoin’s 30-day and 365-day MVRV are in negative territory,” it may indicate a favorable time to buy.
The data indicates that investors who bought their BTC at entry prices below $50,000 are still in profit, even with a further 10% crash in the market. This suggests that even during periods of market volatility, there are opportunities for investors to capitalize on favorable price points. Santiment further highlights that buying during times when certain metrics are in negative territory could yield significant returns, as evident from past data showing a return of +132% in such scenarios.
While the recent Bitcoin price drop may have caused panic among some investors, the majority are still seeing profits. The growing trend impacting long-term holders presents a unique opportunity for new investors to enter the market and existing investors to capitalize on potential price increases. Historical data suggests that buying during times of market distress can lead to significant gains in the long run. Therefore, it is crucial for investors to closely monitor market trends and make informed decisions based on data and analysis.
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