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Market turbulence has left many in loss, but long-term Bitcoin holders remain largely unaffected, analysts at Glassnode say.
Bitcoin’s (BTC) long-term holders are still in a strong position despite ongoing market uncertainty, according to a new report from on-chain analytics firm Glassnode.
Although many new investors are currently facing the “largest unrealized losses on record,” long-term holders “remain broadly in profit,” the report reads. The analysis highlights that while short-term holders are experiencing significant unrealized losses, long-tetm investors continue to hold their positions.
“[…] from an individual investor perspective, the market has endured far more severe drawdowns in prior cycles, notably during the May 2021 and 2022 bear markets.”
Glassnode
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Furthermore, the report indicates that “the percentage of the circulating supply held in a profitable position remains elevated at a value of 75%,” suggesting that the majority of underwater investors are recent entrants to the market. Glassnode also noted that the supply held by long-term holders continues to trend higher, indicating confidence among seasoned investors.
Although historically substantial expansions in unrealized losses among long-term holders “have often marked the confirmation of bear market conditions,” the analysts say that as of now, there is “no clear evidence to suggest such a regime shift is underway.”
Earlier in April, cryptocurrency exchange Coinbase warned that crypto may be entering a new bear market, but it expects prices to find support between May and June, potentially setting up a stronger Q3.
Read more: XRP price forms bearish head and shoulders pattern: impending collapse towards $0.61?
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