Bitcoin’s long-term holders remain broadly in profit, analysts say

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

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.