Bitcoin (BTC) is currently trading sideways below the $85,000 mark as of April 18th, according to data from on-chain analytics firm Glassnode. This data reveals that short-term holders are experiencing significant unrealized losses in the market. While these short-term holders remain underwater with substantial unrealized losses, long-term holders continue to be broadly profitable. However, mounting unrealized losses are posing a risk to even seasoned investors. 📈
Unrealized losses represent the total amount of losses held across all Bitcoin in circulation, calculated from the difference between the average acquisition cost and the current market value.
The recent market correction has heightened the attention of both retail and institutional investors regarding unrealized losses, which have surged during price drops. 📉
Glassnode data suggests that repeated price corrections across the broader crypto market haven’t yet indicated sustainable bullish momentum. Bitcoin appears to be following a historical bearish pattern observed in previous cycles.
Short-term holders are experiencing these losses as a direct response to recent market dips, though they’re not as sharp as those from past bear markets. Despite this resemblance in pattern, speculation regarding an impending bear phase has surfaced. 🐻
Long-term holders face a mixed picture; while they remain largely profitable, they could also absorb losses if the price continues to decline.
A key indicator of long-term investors maturing into Bitcoin whales is that this metric historically aligns with bear market confirmations but isn’t definitive proof on its own. Despite bearish signals from this data, major investment firms and Bitcoin whales haven’t stopped accumulating Bitcoin, suggesting a possible bullish outlook for the long term.
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