- Most Bitcoin holders are still in profit.
- Losses from peak buyers may signal opportunity.
- Low selling pressure hints at a price rebound.
Bitcoin, currently priced at $94,156, is demonstrating resilience amidst the broader struggles of the global economy. On-chain data from IntoTheBlock, shared by analyst Maartunn, reveals that 1.66 million BTC, valued at over $157 billion, are currently being held at a loss, accounting for 8.34% of the total Bitcoin supply.
Many Investors Bought at Bitcoin’s Peak Price
The problem is that many investors purchased Bitcoin at the market’s highs and are now seeing their holdings below their purchase price. This might sound scary on the surface, but the experts say that given the spread of BTC holdings, the data might open up a good investment opportunity.
Even a closer look at Bitcoin holders reveals that a great majority of them are in profit. While 83.93% of BTC holders are profiting from their investments, an even 1.66 million BTC remains in the red, with price knocking on the door for orphaned profits. About $1.58 trillion worth of these profitable holdings has created a signal that many of the BTC holders bought before the price rise extended and are not selling for now.
7.73% of Bitcoin Holders Break Even
What’s more, 7.73%, or equivalently 1.54 million BTC, of holders are at a break-even point between their purchase prices and the current market price. This seems to indicate a pretty sound market sentiment, as there are profit and break-even holdings. Those holding the small fraction experiencing losses can simply sell their positions and provide liquidity or wait for the price to rebound and make a profit.
Consolidation periods with few underwater holders have been followed by upward momentum due to a lack of selling pressure and increased interest from new buyers. Therefore, this makes it a potential buying opportunity for those willing to take the risk.
