This holiday season, Bitcoin is breaking records while the price action is below $17,000, causing holders unparalleled suffering. According to data from on-chain analytics company Glassnode, which includes both short-term and long-term investors, investors are sitting on more losses than ever before.
BTC/USD has not recovered since the FTX meltdown sent crypto markets into a tailspin. For investors who bought in more recently, its decline to levels last seen two years ago has caused problems because, logically, they are nursing negative returns on their positions.
But the suffering goes much deeper than that, and Glassnode reveals the full extent of unrealized losses that trouble newcomers and seasoned pros alike.
Current Bitcoin price levels are a nightmare for both short-term and long-term investors.
Entities holding incoming coins for less than or more than 155 days are STHs and LTHs, respectively.
According to the most recent data, as of December 26, there was 1,889,585 BTC worth of STH bitcoins held at a loss, while there was 6,057,858 BTC worth of LTH bitcoins. When excluding BTC held by exchanges, this represents a record of the tool’s usage of the total supply of Bitcoin.
Hodlers already held over 50% of the supply in unrealized losses after the FTX implosion, as Cointelegraph previously reported.
While this is happening, it is still important to consider the future of BTC price action.
Analysts predict that a new macro BTC price bottom is still to come, despite some metrics indicating that the bear market of 2022 is coming to an end.
A common target is $10,000 for BTC/USD, which may be reached in Q1 2023 as weeks of sideways movement with little volatility come to an end.
However, Bitcoin still has room to fall in terms of its retracement from all-time highs because it has not yet crossed the 80% mark typical of previous bear markets.