A significant share of Bitcoin (BTC) investors have recorded losses because the flagship cryptocurrency’s price continues to appropriate additional below the crucial $20,000 stage. Nonetheless, regardless of some buyers nursing the ache of the continued crash, information indicates that a large share of holders is still in profit.
In this line, as of September 7, 47% of Bitcoin holders stay in profit at the present price whereas the majority at 52% are in a loss, data by TipRanks indicates.
The number of holders in profit may be considered significant, considering Bitcoin has corrected by about 59.95% in 2022. At the same time, Bitcoin is trading almost 70% from the all-time high value of just about $68,000 in late 2021.
Notably, the asset has continued to lose ground below $20,000, trading at $18,700 by press time with a drop of almost 5% in the last 24 hours as per CoinMarketCap data.
Based on the continued Bitcoin sell-off, the number of holders in profit are potentially early buyers within the cryptocurrency. Moreover, this facet helps the state of affairs that Bitcoin has been a greater long-term funding asset.
It’s worth noting that digital asset has additionally emerged as a better investment in comparison with conventional investment assets like shares. As per a Finbold report on September 6, Bitcoin recorded an average of 549.35% in return on investment in comparison with shares of five major banks over 5 years.
It is also worth mentioning that Bitcoin’s short-term investment status has been tested in 2022, with the cryptocurrency working in a high inflation setting characterized by the strict Federal Reserve tightening insurance policies like rate of interest hikes.
This example resulted in Bitcoin recording its worst quarterly returns in over a decade throughout 2022 Q2 with losses of 56%.
Bitcoin’s subsequent action
Following the newest price movement, the variety of wallets in losses will probably prolong additional within the coming days. Notably, the crypto market has anticipated doable additional correction after Bitcoin breached the $20,000 level.
Nonetheless, monitoring how the worth plays out will be interesting, considering that different assets like Ethereum (ETH) are recording gains. In this line, crypto trading expert Michael van de Poppe opines that the market is gearing to move up. however, Bitcoin is appearing as a stumbling block.