TL; DR Breakdown
- Glassnode says about 70% of wallets in profits despite the decline
- The firm says the current bear run is manageable
- Bitcoin could trade higher or lower in coming weeks
In the last few weeks, the crypto market has been awash with volatility, leading to assets shedding and increasing in value drastically. The king of the cryptos, Bitcoin, has not been left behind as the digital asset crashed remarkably recently. However, a new survey from on-chain analysis firm, Glassnode has pointed out that about 75% of Bitcoin wallets are still holding on to their profits in the wallet despite the market turmoil.
Glassnode says the bear market is still manageable
According to the issue of its weekly report, Glassnode looked into the number of wallets that are still choosing to hold on to their profits. Its research pointed out that around 70% and above wallets were still in the profit zone. The firm noted that this figure is in the top half compared to the exact figure in the bear market that traders witnessed in 2018.
However, Glassnode noted that this bear market is still negligible compared to the worse ones that the market has seen in recent years. The firm noted that only about 25% are not seeing profits, which makes this bear market one of the fairest ones. Glassnode then pointed out that the market is still declining as a further downtrend could see other wallets with unrealized gains lose their profits.
Bitcoin could trade lower or higher in coming weeks
In the report, Glassnode pointed out that holders of Bitcoin in the long term are likely not to be affected by a deep market drop. These long-term investors are holders of the digital asset who have held it for more than 155 days. The statistics also show that the amount of short-term bitcoin holders is 7.88% compared to that of long term holders at 67.5%.
Presently, Bitcoin just pulled safely above $40,000 compared to the under $40,000 it traded some hours ago. The digital asset has been able to post a loss of 4.05% in the last 24 hours. With the asset flirting with the bears in recent weeks, traders and analysts are bracing up for trade around the $30,000 range. However, other on-chain metrics have shown that the asset could reverse, posting a massive price of $50,000 in the process.
Glassnode also positioned that the Bitcoin dominance rate is 58% on the Bitcoin network at this present time, a number that has been there since December 2021. Finally, the firm notes that the struggle in price could mean that traders are taking profits while others are attacking investing with kids’ gloves.