Despite a recent market dip, the majority of Bitcoin (BTC) investors continue to see profits on their holdings, reflecting the cryptocurrency’s resilience and long-term growth potential. While short-term volatility has led to losses for newer investors, overall market sentiment among experienced holders remains largely optimistic.
Bitcoin’s price recently fell from highs above $100,000 to around $75,000, prompting concerns among retail investors and traders. However, blockchain data shows that over 85% of BTC holders are still in profit, suggesting that the bulk of investors acquired their assets at much lower price points. These long-term investors, who are often less influenced by short-term price swings, continue to hold their positions, reinforcing Bitcoin’s reputation as a long-term store of value.
Short-term holders, defined as those who acquired Bitcoin within the past 155 days, are bearing the brunt of the recent correction. These investors are currently sitting on average unrealized losses of approximately 18%, with their realized purchase price estimated around $91,600. The recent correction, while painful for these traders, appears to be part of a healthy market cycle rather than a major downturn.
At the same time, long-term investors are using this correction as an opportunity to accumulate more Bitcoin. Reports show that in a recent nine-day stretch, these holders added nearly 297,000 BTC to their wallets. This behavior suggests a strong belief in the future value of Bitcoin, with seasoned investors viewing the current dip as a discount rather than a deterrent.
On-chain indicators reinforce this bullish stance. The Market Value to Realized Value (MVRV) Z-Score—a metric that signals whether Bitcoin is over- or undervalued—has bounced back from a low of 1.43, a level historically associated with local market bottoms. Additionally, the Value Days Destroyed (VDD) Multiple, another key metric, remains in a zone that indicates accumulation rather than significant profit-taking.
Technical analysis also points to a generally stable outlook. Bitcoin’s 50-day and 200-day moving averages sit at $64,500 and $63,000 respectively, reflecting long-term strength. Meanwhile, trading volume remains healthy, averaging around 24,000 BTC per day over the last week, peaking at 27,000 BTC on April 15.
The divide between long-term and short-term investor outcomes is a recurring theme in the crypto space. The recent market correction has clearly impacted those who entered near peak levels, yet the broader investment community seems largely unshaken. This highlights the importance of a long-term strategy in a highly volatile asset class like Bitcoin.
While the long-term outlook remains positive, investors should approach the market with caution. Macroeconomic developments, regulatory shifts, and market sentiment can change rapidly, influencing short-term performance. Bitcoin remains a high-risk, high-reward asset, and prudent risk management should always be part of any investment strategy.
In conclusion, Bitcoin’s latest price movement underscores both its volatility and its enduring appeal. Although short-term losses are a reality for some, the majority of holders remain in profit, bolstered by strong fundamentals and historical performance. As the crypto market continues to evolve, long-term conviction appears to be the key to navigating turbulent times.