The amount of Bitcoin held in self-custody continues to increase, hitting record levels. Both short-term and long-term hodlers are holding on more unrealised losses than ever registered in the crypto history
Data from on-chain analytics firm Glassnode illustrates that Bitcoin investors are holding on more crypto losses than ever before.
Since the FTX collapse hit the market, Bitcoin price steadily declined. It’s currently trading at $16,672, bringing negative returns to the holders’ positions. According to the latest Glassnode figures, as of Dec. 26, short-term Bitcoin hodlers witnessed the total loss of 1,889,585 BTC, while the losses of long-term Bitcoin investors tally at 6,057,858 BTC.
The unrealised loss amount is record-breaking, as the percentage of Bitcoin supply held in self-custody is unprecedented. FTX bankruptcy taught crypto investors they couldn’t trust even big household industry names with their crypto assets. Therefore, exchange outflows have increased across all BTC wallet sizes “from shrimp to whales”.
Moreover, the losses of Bitcoin investors may as well increase next year. Many analysts suggest that a new BTC price bottom will be about $10,000. The decline may potentially happen as soon as Q1 2023.
Considering its retracement from all-time highs, Bitcoin still has much room to fall. It has not yet breached the 80% threshold common to previous bear markets.
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