A growing number of short-term Bitcoin traders’ positions are held at a small loss, but data shows a healthy market when compared to previous bull cycles.
Bitcoin (BTC) trades at $57,450, 22% below its all-time high of $73,835, reached on March 14. Despite the recent bearish price action, analysts say the average Bitcoin investor remains “relatively profitable.”
According to market intelligence firm Glassnode, Bitcoin investor profitability data indicates that this remains a relatively shallow drawdown compared to historical bull cycles, suggesting that the aggregate investor remains in a relatively robust financial position.
Taking the ratio between total unrealized profit and unrealized loss, Glassnode analysts found “that profits remain 6x larger than losses.” This ratio has maintained above the current value for about 20% of trading days, highlighting the robust financial position of the average Bitcoin investor.
