Originally published on: December 27, 2022
As Bitcoin continues to experience volatile price action this holiday season, hodlers are feeling the heat with a record 8 million BTC now held in unrealized losses, according to data from Glassnode.
Following the recent FTX meltdown that shook the crypto markets, BTC/USD has struggled to recover, plunging to levels not seen in two years. This downward spiral has left both long-term and short-term investors in a state of distress.
Glassnode’s analytics reveal that newcomers and seasoned investors alike are grappling with the harsh reality of negative returns on their Bitcoin holdings. The pain is evident across the board, as both short-term holders (STHs) and long-term holders (LTHs) are facing significant losses due to the current price levels.
As of December 26, Glassnode reports that STH Bitcoin holders are sitting on 1,889,585 BTC in losses, while LTHs are grappling with 6,057,858 BTC in unrealized losses. These figures mark a new record in terms of the percentage of Bitcoin supply affected by the losses, excluding coins held by exchanges.
While some experts predict a potential end to the bear market in 2022, others foresee a further decline in BTC price, with a possible bottom of $10,000 in Q1 2023. Bitcoin’s retracement from its all-time highs suggests that there is still room for further decline, as it has not yet crossed the 80% threshold seen in previous bear markets.
The future of Bitcoin’s price action remains uncertain, but hodlers are advised to tread carefully as they navigate the current market conditions. Stay informed, stay vigilant, and subscribe to our Markets Outlook newsletter for more critical insights and updates on the crypto market landscape.
