Bitcoin long-term holders who previously had unrealized losses are now back in profit as the price of Bitcoin surpassed its November 2021 all-time high.
On June 4, when Bitcoin was trading around $68,000, only 0.03% of long-term holders (those holding Bitcoin for over 155 days) were still experiencing losses, as reported by Glassnode. This group primarily comprised individuals who bought Bitcoin during the 2021 bull run when it hit its previous all-time high of $69,000 in November 2021.
Even at $68,000, the number of long-term holders at a loss was minimal, with approximately 4,900 Bitcoin bought above the current market price. As long as Bitcoin remains above $69,000 in the coming months, all long-term holders will continue to be profitable. However, by August 13, the 155-day LTH timeframe will include March 11, when Bitcoin surged to $72,110.
Currently, Bitcoin is trading at $71,080 according to CoinMarketCap data. Glassnode pointed out that short-term holders (those holding Bitcoin for less than 155 days) are the ones facing the majority of unrealized losses. These are primarily individuals who bought in March before Bitcoin hit its current all-time high of $73,679 on March 13.
Glassnode mentioned that the recent price increase is reigniting market anticipation after a prolonged consolidation period. Despite approaching $72,000 on June 6, Bitcoin struggled to surpass its all-time high, retracing back to around $71,000.
Possible reasons for this struggle include lingering regulatory uncertainty and concerns about negative macroeconomic events. With the upcoming release of the United States employment report on June 7 and the Consumer Price Index on June 11, lower results could potentially push Bitcoin to new all-time highs, according to Marcus Thielen, head of Research at 10x Research.
Please note that this article does not offer investment advice or recommendations. All investment decisions involve risks, and readers should conduct their own research before making any decisions.