Bitcoin’s (BTC) year-long decline has left several holders with unrealized losses, including long-term (LTH) holders who have held the coin for at least six months.

However, CryptoSlate’s analysis of Glassnode data showed that this group of investors remains bullish on the flagship digital asset.

Source: Glassnode

According to Glassnode data, the cohort holds a record amount of Bitcoin: 13.8 million. The pool is also considered the smart money of the Bitcoin ecosystem because they typically accumulate during bear markets and sell off during bull runs.

For context, long-term holders added around 1 million BTC to their holdings in November. This was because the LUNA crash in May caused a significant drop in price that allowed traders to accumulate the asset. Those who bought Bitcoin at the time are now part of this cohort, as they have been for the past six months.

Long-term ATH holders despite November capitulation

Meanwhile, the recent collapse of FTX led to a minor capitulation among LTH, causing its supply to fall slightly in early November. Despite this, the Glassnode data chart below shows that long-term headline supply is still at an all-time high.

Source: Glassnode

For many, that’s bullish because investors aren’t capitulating. Ark Investment shares this view, saying the data point indicates the cohort’s “long-term focus and high conviction, despite recent events.”

6 million BTC held at loss by long-term holders

Data from Glassnode, analyzed by CryptoSlate, showed that long-term holders could hold their Bitcoin because they may suffer substantial losses if they sell.

According to the data, around 6 million BTC held by long-term holders are currently at a loss, the highest ever.

The last time the pool had this much unrealized loss was in 2015, 2019, and 2020 when they had over 5 million BTC.

Long-term holders of this cycle posted the two biggest losses

Further analysis by CryptoSlate showed that long-term holders posted two of the biggest losses ever during this market cycle.

Source: Glassnode

According to data from Glassnode, long-term holders of this cycle lost 0.09% of BTC’s market cap per day in June and November as the industry reeled from the collapse of the Terra ecosystem and the fall of FTX. . This was only surpassed by the losses registered in 2015 and 2019.

Regardless of these huge losses, 78% of the total BTC supply is still in the hands of long-term holders, similar to 2015 bear market levels.

Source: Glassnode

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This post Bitcoin Long-Term Holders Remain Bullish Despite Losses

was published first on https://cryptoslate.com/research-bitcoin-long-term-holders-remain-bullish-despite-losses/

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