On-chain data from Glassnode shows that only 2.2% of short-term Bitcoin (CRYPTO: BTC) holders are still in profit.
What Happened: In the latest edition of its weekly newsletter, Glassnode analysts observed that a great majority of investors are holding unrealized losses.
With #Bitcoin prices trading at the lower end of the 2021-22 range, almost all investors of this cycle are now holding an unrealized losses.
— glassnode (@glassnode) June 7, 2022
Just 2.2% of Short-Term Holders are in profit.
Read about declining network profitability in The Week On-chain.https://t.co/fCPFSx1ETT pic.twitter.com/crrvaZW0Jc
“Meanwhile, LTHs have seen their share of profitable supply drop from 68.5% in April to 55.7%” stated the report.
At these levels, analysts found that long-term holders appear to be shouldering much of the market’s unrealized losses.
They also observed that the growing dominance of long-term holders and diminishing share of short-term holders are consistent with the trend seen in the late stages of a bear market.
“In the last two extended bear markets, the 14 DMA of this metric broke above the 90% threshold line. This means under the psychological pressure of bearish price action, short-term holders were holding < 10% of the profit in the market,” stated the analysts.
“With the recent leg down to sub $30K range, this metric crossed over the 90% threshold.
Essentially, the data shows that almost all buyers since January 2021 are holding unrealized losses.
Price Action: According to data from Benzinga Pro, Bitcoin was trading at $30,319, up 2.73% over the last 24 hours. The leading digital asset is currently trading 56% lower than its all-time high ahead of $69,000.
