• Even at a loss of $39,000 for BTC addresses, over three-quarters are still making a profit.
• The bear market at the moment is not as extreme as those in previous cycles.
• Bitcoin owners who are long-term investors in Bitcoin will be the most vulnerable to a loss.

Bitcoin’s price is currently dipping close to $39,000, but despite this decline, the analytics firm Glassnode found that three quarters of Bitcoin (BTC) addresses are still in the profit.

In Glassnode’s Week-On Chain report that was published on Monday, April 11, it was found that around 70% – 75% of BTC addresses are still seeing an unrealized profit. This is much higher than the 45% – 50% that was seen in the 2018 bear market.

Glassnode analysts commented on the current market by saying “the current bear market is not as severe as the worst phases of all prior cycles, with just 25% to 30% of the market being at an unrealized loss. It remains to be seen if further sell-side pressure will drive the market lower, and thus pull more of the market into an unrealized loss like prior cycles.”

According to the report, long-term Bitcoin owners who hold Bitcoin for longer than 155 days are less likely to lose their investment. This report shows that approximately 67.5% long-term Bitcoin holders have not realized a profit. Only 7.88% short-term owners are at profit.

The report also explained that about 58% of the volume on the Bitcoin network is in what is called a “profit dominance”. In bear markets we typically see periods with high transaction volumes that result in losses. This could indicate that sentiment is changing.

Glassnode also mentioned that, “given prices continue to struggle, it does suggest that the demand side remains somewhat lacklustre and that investors are taking profits into whatever market strength can be found.”

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