Bitcoin Investors Remain 'Relatively Profitable' Despite Market Drop

Despite Bitcoin's recent decline, the average Bitcoin investor has still proven to be relatively profitable.
Short-term Bitcoin traders' positions are suffering some losses, but how do they compare to past bull runs?
According to data, the current market is maintaining a healthy state. Bitcoin is currently trading at $57,000 (about 815,000 yen) on the cryptocurrency market price site CoinMarketCap.
It is trading at around $10,000, down about 22% from its all-time high of $73,835 hit on March 14. Despite the recent bearish market, Analyst
The study says the average Bitcoin investor is still "relatively profitable." Market intelligence firm Glassnode has published a report on Bitcoin investor profitability.
This indicates that the decline is a relatively shallow correction compared to past bull markets, suggesting that investors overall are still in relatively healthy financial position, they said.
"When we analyzed the ratio of the total unrealized gains to unrealized losses, we found that gains were six times greater than losses," Glassnode analysts explained. "This ratio is consistent with the current unrealized gains ratio for about 20% of trading days."
"The average Bitcoin investor is holding onto relatively small unrealized losses compared to previous cycles," he said.
Meanwhile, the bull market is temporarily stalling. Short-term holders (STH), those who have held Bitcoin for less than 155 days, are currently facing the most pressure from the market.
The unrealized losses of STH holders have been steadily increasing in recent months, and the price is still trending downwards.
STH’s market value realized value (MVRV) ratio is below the breakeven point of 1.0, reaching a similar level to the August 2023 recovery rally following the FTX crash.
, showing that new investors, on average, are holding unrealized losses. The report also highlighted that all age groups within the STH cohort are currently holding unrealized losses.