83.7% of Bitcoin Short-Term Holder Supply Suffers Unrealized Losses
A recent report from Glassnode reveals that the majority of Bitcoin short-term holders are experiencing unrealized losses, with 83.7% of their supply currently in the red. This data is based on the “percent supply in profit” indicator, which calculates the percentage of circulating Bitcoin supply that has gained value. The counterpart to this indicator is the “supply in loss,” which represents coins that have decreased in value.
Although the overall supply is affected, this metric is particularly relevant to short-term holders. In contrast, long-term holders have seen an increase in supply profitability due to a delay between buying coins and being counted in this supply. Despite the price of Bitcoin dropping, the supply that matured five months ago is currently held at a profit, contributing to the rise in long-term holder supply in profit.
Bitcoin Price Surges by 4%
Over the past 24 hours, Bitcoin has experienced a 4% surge, breaching the $26,100 mark.
Hot Take: Majority of Bitcoin Short-Term Holders are at a Loss
According to Glassnode’s latest report, it appears that short-term Bitcoin holders are facing losses, with only 16.3% of their supply currently in profit. This highlights the volatility of the cryptocurrency market and the risks involved in short-term trading. On the other hand, long-term holders have seen an increase in profitability due to the delayed impact of their initial investment. Despite the overall market downturn, these holders have benefited from buying at lower prices. It’s crucial for investors to carefully consider their investment horizon and risk tolerance when participating in the cryptocurrency market, as short-term gains can quickly turn into losses.
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