Bitcoin (Bitcoin) Long-term profitability has fallen to levels seen during the last December 2018 bear market. According to data shared by crypto analytics firm Glassnode, BTC holders are selling their tokens at an average loss of 42%.
Glassnode data shows that the top cryptocurrency long-term holders selling tokens have a cost base of $32,000. That means the average purchase price for these holders selling stacks is over $30,000.
The current market downturn in addition to declining profitability can be attributed to several macroeconomic factors. The BTC market is still strongly correlated with the stock market, especially tech stocks, which are currently in even bigger declines than cryptocurrencies.
Rising inflation, along with the central bank’s inability to control it, is also adding to the pain of BTC investors. With much less to invest on hand, traders and long-term holders are shifting to assets with short-term returns and lower risk.
This was also evident from the sale of BTC miners. BTC miners have historically been long-term holders in anticipation of higher returns. However, increasing mining difficulty combined with rising energy costs has narrowed profit margins for these miners, forcing them to settle for short-term gains.
Bitcoin miner balances have seen a large outflow since the price rejected a local high of $24.5k, suggesting that total miner profitability is still under some stress. increase. Miner outflows range from 3,000 to 8,000 BTC, but market data suggests that 8,000 BTC could be expelled each month if the price drops to $18,000.
Bitcoin, the top cryptocurrency, is currently trading in the $19,000 to $20,000 range, struggling to overcome the $20,000 resistance despite multiple breakouts in September. I’m here.
Profitability for long-term holders, including miner profitability, has reached multi-year lows. However, the levels are very similar to when the crypto market bottomed out in previous cycles.
Bitcoin is currently trading in the $19,000 to $20,000 range and is struggling to overcome the $20,000 resistance despite multiple breakouts in September. It is currently trading at a 70% discount from its market top of $68,789 posted last November.