Bitcoin hodlers see record 8 million BTC in unrealized loss, data shows

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Bitcoin (BTC) is breaking records this Christmas as price action below $17,000 causes unprecedented pain for hodlers.

Data from on-chain analytics firm Glassnode shows that both short-term and long-term investors are taking more losses than ever before.

New or old, Bitcoin hodlers suffer heavy losses

Since the collapse of FTX sent crypto markets plummeting, BTC/USD has failed to recover.

Its descent to levels last seen two years ago has created problems for hodlers who have bought more recently, logically they are feeding negative returns on their positions.

The pain runs deeper than that, however, and Glassnode is now showing the extent of the unrealized loss plaguing newcomers and veterans alike.

For short-term (STH) holders and long-term (LTH) holders, the current price levels of BTC are a nightmare. STHs and LTHs are defined as entities storing incoming coins for less or more than 155 days, respectively.

According to the latest figures, as of December 26, STH Bitcoin held at a loss totaled 1,889,585 BTC, with the LTH tally at 6,057,858 BTC.

Bitcoin STH, LTH supply held at a loss chart. Source: Glassnode

This is a record in terms of the percentage of bitcoin supply used by the tool, which excludes BTC held by exchanges.

Bitcoin Unrealized Loss Log Chart % LTH, STH. Source: Glassnode

As Cointelegraph previously reported, hodlers already controlled over 50% of the unrealized loss supply immediately following the FTX implosion.

There’s room left for maximum pain

What the future may hold for BTC price action, meanwhile, remains a matter of scrutiny.

Related:Bitcoin exchange withdrawals drop to 7-month low as users forget about FTX

While some metrics are calling the hour in the 2022 bear market, analysts believe that a new BTC macro price floor is yet to come.

A popular target is $10,000 for BTC/USD, which is potentially due in the first quarter of 2023 as weeks of sideways action with virtually no volatility wind down into the new year.

In terms of retracement from all-time highs, however, Bitcoin still has room to fall, having yet to cross the 80% threshold common to previous bear markets.

Bitcoin price decline from all-time highs chart. Source: Glassnode

The views, thoughts and opinions expressed herein are the sole authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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