2022 bear market still active and has certainly had an impact on all Bitcoin investors
According to the on-chain analytics firm glassnodeBitcoin long-term holders are feeling the pinch of the current market situation. This is because the profitability of this bitcoin holder class has fallen to the levels last seen during the depths of the bear market of December 2018.
The majority of these holders joined the market at a price point of roughly $32,000, as indicated by the fact that they are selling their Bitcoin at an average loss of 42%, as reported by Glassnode. In the 2021-2022 cycle, buyers are now selling their stakes at a significant loss.
This current bear market competes meaningfully with the worst bears of the past based on the biggest losses, as it comes very close to the -50% peak losses in 2018 (to date). It would be encouraging if LTH-SOPR could return to a meaningful 0% loss, but historically, it has taken several months to reach this escape velocity.
Bulls yet to establish meaningful uptrend
Undoubtedly, the 2022 bear market is still active and has certainly had an impact on all Bitcoin investors. Despite not seeing any widespread loss of conviction among HODLers, as signaled by lifespan metrics in decline, the bulls still cannot establish a meaningful uptrend.
As rallies are sold and liquidity exits are taken at or near cost basis, investor spending pattern mindset remains firmly in bear market territory. On Wednesday, the largest digital coin by market cap fell more than 7% to touch a low of $18,461 before rebounding.
Bitcoin is, however, yet to shake off the bearish pressure as it dabbles above the $19K mark. At the time of publication, the largest cryptocurrency by market capitalization, Bitcoin, was trading marginally up at $19,267.
According to Glassnode data, bitcoin miners are also feeling the pinch as “Bitcoin miner balances have seen large outflows as prices were rejected from a local high of $24.5k. This suggests that overall miner profitability is still high.” Is in a degree of tension with around 8000 BTC/month. USD is being spent to cover denominated costs.”
