Bitcoin, Currently Priced at $94184, Is Showing Strength Against the Struggling State of the Global Economy

This happened because during the peaks of the market, many investors reportedly bought tokens that are now below their worth.

Bitcoin's price strength is notable considering the weakness in the global economy. On-chain data from IntoTheBlock, shared by analyst (Maartunn) on X, shows 1.66 million BTC are currently being held at a loss, equal to 8.34% of the total supply.

1.66 million BTC are currently being held at a loss.

This happened because during the peaks of the market, many investors reportedly bought tokens that are now below their worth. While this may look startling, when assessed under the overall distribution of…

— Maartunn (@JA_Maartun) September 7, 2023

This is because during the peaks of the market, many investors reportedly bought tokens that are now below their worth. According to experts, this may look startling, but when assessed under the overall distribution of Bitcoin holdings, the alarming claim transforms into a promising opportunity.

Most Bitcoin Holders Are Still in Profit

83.93% of Bitcoin holders are in profit, even though 1.66 million BTC are still at a loss. This high percentage shows that a lot of investors bought the coin before its price surged and are holding it confidently.

These profitable holdings are roughly $1.58 trillion, which suggests that despite fluctuations, the overall sentiment in the market is positive. Additionally, 7.73% of holders are at a break-even point, which comes to around 1.54 million BTC, meaning their purchase prices are almost equivalent to the market price.

The majority of holders being either in profit or at breakeven shows healthy market sentiment. On the contrary, this small fraction of holders who are at a loss may temporarily sell, which would provide liquidity.

They may also consider waiting in hope for the prices to bounce back. Many times in history, periods of consolidation with few underwater holders lead to upward momentum due to decreased selling pressure and new buyers entering the market. Hence, a buy opportunity exists for those willing to take the risk.