- Even with Bitcoin dipping close to $39,000, three quarters of BTC addresses are still in the profit.
- The current bear market is not as severe as the worst phases of all prior cycles.
- Long-term Bitcoin holders are the least likely to suffer a loss.
Bitcoin’s price is currently dipping close to $39,000, but despite this decline, the analytics firm Glassnode found that three quarters of Bitcoin (BTC) addresses are still in the profit.
In Glassnode’s Week-On Chain report that was published on Monday, April 11, it was found that around 70% – 75% of BTC addresses are still seeing an unrealized profit. This is much higher than the 45% – 50% that was seen in the 2018 bear market.
Glassnode analysts commented on the current market by saying “the current bear market is not as severe as the worst phases of all prior cycles, with just 25% to 30% of the market being at an unrealized loss. It remains to be seen if further sell-side pressure will drive the market lower, and thus pull more of the market into an unrealized loss like prior cycles.”
The report also showed that long-term Bitcoin holders, who have held Bitcoin for more than 155 days, are the least likely to suffer a loss. It is estimated that 67.5% of these long-term holders are at an unrealized profit. Only 7.88% of shorter-term holders are currently at a profit.
The report also explained that about 58% of the volume on the Bitcoin network is in what is called a “profit dominance”. Normally in bear markets, we see long periods of transaction volume that results in a loss. The current reversal to profit dominance could be a sign that sentiment is shifting.
Glassnode also mentioned that, “given prices continue to struggle, it does suggest that the demand side remains somewhat lacklustre and that investors are taking profits into whatever market strength can be found.”