Coinspeaker
Only New Custodial Wallets and ETFs Face Losses in Bitcoin Investment: CryptoQuant CEO Reveals Market Disparities
Ki Young Ju, the CEO and founder of on-chain market intelligence platform CryptoQuant, has revealed some market disparities when it comes to Bitcoin BTC $57 892 24h volatility: -0.3% Market cap: $1.14 T Vol. 24h: $27.62 B profitability. In a recent post on X (formerly Twitter), he looked at three various groups, made up of miners, traders, and investors, and compared the prices at which they acquired Bitcoin against its current price of $57,000.
Older Investors and Miners Still in Profit Despite Recent Bitcoin Fluctuations
From his study, Young Ju surmised that only new custodial wallets and exchange-traded fund (ETF) holders are currently facing losses. In contrast, he claims that long-term investors and mining firms are reaping large profits at the moment.
According to the CEO’s explanation, custodial wallets and ETF holders, who entered the market with an average purchase price of $62,000 per Bitcoin, are having to endure a 6% loss on their investments at current prices. As concerning as this price drop might be for newcomers, others in the market are not exactly feeling the same pinch. That is because the group of Bitcoin traders, who acquired the asset at an average price of $55,000, currently have a modest 3% profit to boast of.
Another group that is in profit is that of mining firms. They currently sit on a 32% profit margin, considering that they secured their Bitcoin at an average price of $43,000.
Perhaps the most notable group of gainers is the old whales. This set of individuals or corporate bodies have held onto their crypto for many years and are seeing the largest gains as of now. With an average cost basis of just $27,000 per Bitcoin, these investors are currently seeing an outstanding 106% return on their investments.
Overall, this huge disparity, in terms of profit, between the old investors and new market entrants serves as proof of the benefits of the long-term strategy for participating in the greatly volatile crypto market.
Current Market Overview
As of press time, Bitcoin was trading at $58,164, up 0.20% over the last 24 hours, according to data from Coinspeaker. Despite this little gain, it’s clear that those who entered the market recently are still not faring well. Whereas, older investors are experiencing more profits amid the current price fluctuations.
Without a doubt, more price swings will happen as time goes on. That is, even as the market adjusts in line. However, as the crypto space continues to unravel with all its peculiarities, the division between profits and losses is likely to remain very distinct. This is especially true for those who joined the market during Bitcoin’s most recent peak.
