Blockchain analytics firm Glassnode said on Monday although the cryptocurrency market crashed, three-quarters of Bitcoin wallets are still in profit.
“We can see that the current bear market is not as severe as the worst phases of all prior cycles, with just 25% to 30% of the market being at an unrealized loss,” Glassnode’s weekly newsletter said.
According to Glassnode’s on-chain analytics, the current bullish market isn’t as severe as the old ones. But, the report also noted that long-term holders have seen similar crashes before.
“LTH coins are the least likely to be spent and sold on a statistical basis, and it can be seen in 2018 and March 2020 that they have held through much deeper losses in the past,” Glassnode said.
Glassnode stated that the Bitcoin market is led by HODLers (Holding On For Dear Life — which means that the majority of Bitcoin investors are long-term holders. It added that investors who hold crypto for the long term have higher chances of making unrealized profits.
Bitcoin was last down around 2.1% at $39,965, according to CoinMarketCap data, although it’s still down by more than 12% over the last week and by more than 16% for the year so far.