BTC Long-Term Holders Are Currently Underwater, With An Average Loss Of 14%

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Amidst the steadfast Crypto Winter that has pumped an enormous amount of FUD into the crypto space, market indicators have not looked very favorable in recent times. In what appears to be the latest in a long line of inauspicious pointers, long-term holders of BTC are currently feeling the heat brought by the bear market, as they record an aggregate loss of 14%.

The LTH-SOPR shows LTHs have an average loss of 33%

The Long-Term Holder (LTH) Cost Basis is an indicator that shows the average price at which long-term holders of an asset purchased it. On this basis, if the asset’s price movement drops below the LTH Cost Basis, it indicates that the holders are currently suffering a loss. 

The long-term holders of BTC are racking in an unrealized loss of 14% with an LTH Cost Basis value of 0.86, as the asset price sinked below expected levels. The last time BTC holders suffered a similar fate was in the 2019 bear market that lasted for over 19 weeks. At that point, long-term holders saw a 36% loss in their BTC holdings, as the LTH Cost Basis reached a low value of 0.64.

Additionally, the Long-Term Holder Spent Output Profit Ratio (LTH-SOPR) indicates the proportion of profit made by long-term holders. Values below one are usually considered losses. The current value is 0.67, which suggests that LTHs are spending their BTCs at values below the price at which they procured them, averaging -33%.

Miners are not particularly having a field day, either

After the crypto markets saw the purging of “BTC Tourists” from the space, leaving mostly diamond hands in the scene, the latter appears to be in a bit of a fix. In what could be interpreted as an addition to the woes of the BTC market, miners’ revenues also seem to be dwindling over time.

As seen on a chart by Bytetree, over the past seven days, Bitcoin miners’ revenue has seen a dip of 1.34%. This is especially caused by the declining hashrate, which plummeted by 7.71% to a value of 5.7 blocks per hour from the 6.18 blocks per hour witnessed seven days ago.