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Bitcoin: Why good things may not come to all who wait especially as BTC hits…

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  • Updated on-chain information showed that BTC holders in the last five years had plunged into losses
  • Still, the Bitcoin state reflected an undervalued position

Over the last decade, Bitcoin [BTC] stayed put as one of the most profitable assets to hold despite a series of price plunges. Albeit, it may not be the case anymore for active traders of the king coin who have held for the last five years especially as average profits hit the neutral zone on 9 June.

Read Bitcoin’s [BTC] Price Prediction 2023-2024

According to Santiment, the fight to gain long-term revival has now been faced with another challenge. This was because the on-chain analytics platform agreed with a Reddit publication that five-year holders were now in losses.

To put in exact values, Santiment revealed that the average return within the period was at -34%.

No help available for submerge exit

Besides the descending outcome of loyalty, Bitcoin also brokedown in its overall push for compensation. Glassnode data, at press time, revealed that supply in profit was 10.71 million BTC.

According to the information displayed, this represented a decline from the value on 7 November even in the wake of the FTX brouhaha. As a result, BTC trading below $17,000, meant that its price was beneath the value the average holder accumulated. 

Bitcoin supply in profit

Source: Glassnode

Nevertheless, short-term respite existed for holders since a couple of analysts suggested that the BTC bottom was either in or extremely close. At the same time, BTC could find it challenging to get holders out of the aforementioned double-digit decline. 

Elsewhere, Bitcoin long-term circulation was scarred with deforms. This was because data from Santiment showed that the five-year coin distribution receded to 14.15 million. An explanation of this condition was that supply was not at its peak. Additionally, coins used within the spell turned down exchanging hands multiple times.

In the shorter period, it was a swing competition for long-term investors who rarely transacted their holdings. At the time of writing, the 365-day dormant circulation was down to 737. The simplification translated to a refusal to sell in the face of dwindling gains and harsh market climate.

Bitcoin dormant circulation and five-year circulation

Source: Santiment

When does respite return?

Forging ahead, Bitcoin’s volatility retired languishing in extremely low regions. However, information available at press time indicated that the rise was modest at 0.02. Notably, a rising volatility index, if sustained, could indicate an opportunity to buy.

However, the same situation is mostly accompanied by market fear. Hence, treading carefully before scooping BTC might be preferable. For the Market Value to Realized Value (MVRV) z-score, Santiment showed that it slipped to -0.216.

Without going too far, this score gives an assessment of the undervalued or overvalued state of BTC in relation to its market cap and realized. At its stance, it depicted a possible chance to find a buying strategy.

Bitcoin price volatility and MVRV z-score

Source: Santiment


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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