Bitcoin long-term holders who previously had unrealized losses are now back in the green as the price of Bitcoin surpassed its previous all-time high from November 2021.
When Bitcoin was trading around $68,000 on June 4, only 0.03% of long-term holders, defined as those who have held Bitcoin for over 155 days, were still experiencing losses, as reported by Glassnode on June 4. These holders had bought Bitcoin during the 2021 bull run when it hit its previous peak of $69,000.
Despite the price reaching $68,000, the number of long-term holders at a loss was insignificant, with only about 4,900 Bitcoin purchased above the current market price. As long as Bitcoin remains above $69,000 in the coming months, all long-term holders will remain profitable. However, on August 13, the 155-day timeframe will include March 11, when Bitcoin surged to $72,110.
At the time of writing, Bitcoin is currently trading at $71,080 according to CoinMarketCap. Glassnode pointed out that short-term holders, those who have held Bitcoin for less than 155 days, are the ones experiencing the majority of unrealized losses. These are primarily individuals who bought in March before Bitcoin reached its current all-time high of $73,679 on March 13.
Glassnode remarked that the recent price increase is sparking renewed excitement in the market, suggesting a return of market speculation after months of price consolidation.
Despite coming close, Bitcoin is still facing challenges in surpassing its previous all-time high. On June 6, the price of Bitcoin nearly reached $72,000 but fell back to around $71,000. This could be attributed to various factors including ongoing regulatory uncertainties and concerns about negative macroeconomic events.
Market analysts are keeping an eye on upcoming economic reports such as the United States employment report on June 7 and the Consumer Price Index on June 11. Positive results from these reports could potentially push Bitcoin to new all-time highs, according to Marcus Thielen, the head of Research at 10x Research.
It’s important to note that this article does not provide investment advice. Readers are encouraged to conduct their own research and analysis before making any investment decisions.