Most short-term BTC holders stated that their investments are unprofitable, with only about 16% of their positions being profitable over the past month, the latest market analysis reveals.
Glassnode analysts presented a report noting that almost all short-term Bitcoin holders record losses. According to on-chain analytics, only 16.3% of their BTC positions have been profitable over the past month.
The data also indicates that crypto prices have returned to the March 2020 level. Analysts believe that falling asset values have led to panic in the market, and a shift in investor sentiment towards the negative results in an increase in unrealized gains.
Analysts also note that there’s weak inflow of new capital and new investors in 2023, signaling continued uncertainty. Macroeconomic conditions, regulatory pressures, and lack of liquidity in all markets exacerbate the situation. Moreover, the report indicates that returns of long-term BTC holders, while gradually increasing, also remain low from a historical perspective.
Earlier, Glassnode analysts found a decline in the trading volume on the Bitcoin network. Thus, the average daily volume of transactions with BTC during the last month didn’t go above $2.44 billion. This figure turned out to be critically low and commensurate with the level of October 2020.
Recently, CP Media analyzed the factors affecting the stability of the first cryptocurrency and found out whether Bitcoin could completely depreciate.