47% of Bitcoin Holders Remain in Profits Despite BTC’s 60% Price Drop in 2022
A significant proportion of Bitcoin (BTC) investors have recorded losses as the flagship cryptocurrency’s price continues to correct further below the crucial $20,000 level. Despite some investors nursing the pain of the ongoing crash, data indicates that a large proportion of the owners are still in profit.
Along these lines, as of September 7, 47% of Bitcoin holders remain in profit at the current price, while the majority of 52% are in losses, data from TipsRanks indicates.
Bitcoin analysis
The number of holders in profit can be considered significant, considering that Bitcoin has corrected by approximately 59.95% in 2022. At the same time, Bitcoin is trading almost 70% from its all-time high value of almost $68,000 in late 2021.
Notably, the asset has continued to lose ground below $20,000, trading at $18,700 by press time with a drop of nearly 5% over the past 24 hours according to CoinMarketCap data.
Based on the ongoing Bitcoin sales, the number of owners in profit are potentially early investors in the cryptocurrency. Furthermore, this aspect supports the scenario that Bitcoin has been a better long-term investment asset.
It is worth noting that the digital asset has also emerged as a better investment compared to traditional investment vehicles such as stocks. According to a Finbold report on September 6, Bitcoin recorded an average of 549.35% return on investment compared to stocks of five major banks over five years.
It is also worth mentioning that Bitcoin’s short-term investment status has been tested in 2022, with the cryptocurrency operating in a high-inflationary environment characterized by the strict Federal Reserve tightening such as interest rate hikes.
This situation resulted in Bitcoin recording its worst quarterly returns in over a decade during Q2 2022 with losses of 56%.
Bitcoin’s Next Action
After the latest price movement, the number of wallets in losses is likely to expand further in the coming days. In particular, the crypto market has anticipated possible further correction after Bitcoin breached the $20,000 level.
However, it will be interesting to monitor how the price plays out, considering that other assets such as Ethereum (ETH) are registering gains. In this line, crypto trading expert Michaël van de Poppe believes that the market is moving upwards, but Bitcoin is acting as a stumbling block.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
