Long-term Bitcoin holders who were previously at a loss have now turned a profit as Bitcoin’s price surpassed its November 2021 all-time high.
When Bitcoin was trading around $68,000 on June 4, only 0.03% of long-term holders, defined as those who have held Bitcoin for over 155 days, were still in the red, as per a report by Glassnode. These holders mostly bought Bitcoin during the 2021 bull run when it hit its previous peak of $69,000 in November 2021.
Even at $68,000, the number of long-term holders in a loss position was minimal, with around 4,900 Bitcoin purchased at a price higher than the current market value. As long as Bitcoin stays above $69,000 in the coming months, all long-term holders will continue to be in profit. However, with the inclusion of March 11 in the 155-day long-term holding timeframe on Aug. 13, when Bitcoin surged to $72,110, the situation may change.
At the time of writing, Bitcoin is trading at $71,080, according to CoinMarketCap. Glassnode highlighted that short-term holders, who have held Bitcoin for less than 155 days, are the ones facing most of the unrealized losses. These holders mostly bought in March before Bitcoin hit its current all-time high of $73,679 on March 13.
Glassnode pointed out that the recent price increase is reigniting market anticipation, signaling a return of market speculation after months of consolidation. Despite approaching the $72,000 mark on June 6, Bitcoin fell short and retreated back to around $71,000. This could be due to various factors, including ongoing regulatory uncertainties and concerns about negative macroeconomic events.
The upcoming release of the United States employment report on June 7 and the Consumer Price Index on June 11 could impact Bitcoin’s price movement. If these reports show lower results, it could potentially push Bitcoin to new all-time highs, as suggested by Marcus Thielen, the head of Research at 10x Research.
Please note that this article is for informational purposes only and does not offer investment advice. Readers are advised to conduct their own research before making any investment decisions.