Analysts at CryptoQuant have reported that the majority of investors who purchased Bitcoin over the last two years are currently in a losing position. This trend has resulted from the recent drop in the asset’s price and market volatility.
This is reported by Business • Media
Market Dynamics and Investor Behavior
According to CryptoQuant data, deep corrections in the Bitcoin market traditionally occur after periods of mass profit-taking. Meanwhile, new phases of growth typically begin after a significant portion of investors has incurred losses. To support this, analysts refer to the chart of the realized price for investors holding the asset for 18 to 24 months, indicating their current losses.
Analysis of the Current Situation and Strategic Recommendations
Experts note that if the price of Bitcoin continues to decline below $60,000, most investors (except long-term holders) will ultimately move into the loss zone. This is likely to prompt the formation of new market strategies and potentially increase the activity of participants who are ready for more aggressive actions.
“If the price of Bitcoin falls below $60,000, pushing most investors (except very long-term holders) into the loss territory, this could actually be a good moment for a more aggressive approach,” the report states.
CryptoQuant also emphasizes that the lack of clear rules for buying or selling the asset complicates investment decision-making. In conditions of high volatility, one’s own risk management strategy and trader discipline play a crucial role.
Analysts specifically noted the reaction of short-term Bitcoin holders during the escalation of the military conflict in Iran. They observed that this category of investors did not demonstrate mass panic or capitulation, and sellers among recent buyers became less active. Instead of an emotional reaction, there is an increase in patience or even exhaustion in selling.
“There is no panic profit-taking, capitulation due to losses, or reactive behavior from this usually event-sensitive cohort. […] In other words, the cohort most prone to panic did not rush to exit the market,” CryptoQuant added.
Experts point out that the market typically stabilizes after weak players finish selling. The current decrease in the volume of losing trades may indicate that the main pressure from liquidations is already behind us.
Previously, specialists at OCP Capital noted that despite the armed conflict between the USA and Iran, the crypto market is maintaining its positions.