The weekend saw a significant drop in the Bitcoin 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 for the pioneer cryptocurrency in the last two years, causing the market to lose billions of dollars. Despite this, Bitcoin holders are still experiencing major gains, with the majority of investors currently in profit despite the market crash.
Bitcoin Holders’ Profitability
Data from the on-chain tracker IntoTheBlock reveals that there are approximately 53.57 million Bitcoin holders globally. Among these investors, a staggering 83% are still seeing profits despite the BTC price dropping below $60,000. Currently, the price hovers just above $56,000, leaving only around 17% of total BTC holders not in profit. Out of this group, 13% are experiencing losses as they purchased their BTC at a higher price, while 4% are at breakeven, having bought their coins at the current value.
With around 44.61 million Bitcoin investors enjoying profits, 6.8 million holders are facing losses, and approximately 2.16 million are at breakeven. Interestingly, the majority of profitable investors acquired their coins below $50,000. Even with a further 10% crash in price, most Bitcoin investors would still be in profit. However, there is a concerning trend impacting long-term holders as their average returns risk falling into losses for the first time in over a year.
While this trend may be worrisome for long-term holders, it can present a buying opportunity for savvy investors. Past data shows that when Bitcoin’s 30-day and 365-day MVRV are in negative territory, it is often a good time to buy. According to Santiment, buying during such periods can yield significant returns, with past instances showing a +132% return on BTC. Therefore, developments like these can serve as indicators of potential market bottoms and optimal buying opportunities for investors.
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