Over the weekend, Bitcoin’s value dropped below $60,000 due to significant sales by major holders, including the German and US governments. This resulted in one of the most considerable declines for Bitcoin in the past two years, causing the market to lose billions of dollars. Despite this sharp drop, an impressive 83% of all Bitcoin holders are still in profit.
This means that only about 17% of Bitcoin holders are not currently seeing a profit. Breaking it down, 13% are experiencing losses because they bought their Bitcoin at prices higher than the current value, while 4% are at breakeven, having purchased their coins around the current price level.
Based on these figures, approximately 44.61 million Bitcoin investors are still enjoying profits, while 6.8 million are facing losses, and around 2.16 million are breaking even. Interestingly, most of the profitable investors acquired their Bitcoin at prices below $50,000. Even with another 10% decline, most Bitcoin investors would still be in profit.
Bitcoin Investors Continue to See Significant Gains
According to data from the on-chain tracker IntoTheBlock, there are about 53.57 million Bitcoin holders worldwide. Of these, 83% are still in profit despite the recent price drop, with Bitcoin currently trading just above $56,000.
Long-Term Bitcoin Holders Facing Potential Losses
While the majority of Bitcoin investors are currently in profit, long-term holders are showing signs of potential losses. A report from Santiment indicates that the average returns for long-term Bitcoin holders risk turning negative for the first time in over a year.
However, this situation is not necessarily bad for Bitcoin’s price. Historically, when the average long-term holder returns become negative, it has often been a favorable buying opportunity. Santiment points out that when “Bitcoin’s 30-day and 365-day MVRV are in negative territory,” it typically signals a good time to buy, as it means purchasing during periods of relative pain for other traders.
To illustrate the potential of such opportunities, Santiment notes that buying Bitcoin the last time both metrics were negative would have resulted in a 132% return. In simple terms, these developments can often indicate the market’s bottom and the optimal time to invest.
