Bitcoin Traders’ Profit Margins Repeat 2022 Bear Market — New Research

Bitcoin is exhibiting classic bottoming-out territory when viewed through the lens of unrealized losses, CryptoQuant says.

• Bitcoin market conditions echo late 2022
• New and large investors realizing losses could indicate Bitcoin price bottom
• Traders operating with negative margins
• Bitcoin miners in a “capitulation” phase
• Crypto markets could be “boring for the next 2-3 months”

BTC Profits Echo the Post-FTX Climate

Bitcoin faces multiple hurdles in returning to its bull market, and traders and miners are feeling the strain.

CryptoQuant reveals that more recent large-volume investors, known as whales, have distributed coins worth $1 billion in July alone.

“The fact that new and large investors are now realizing losses could be an early sign of Bitcoin price bottom. Previously, in February-March, this investor cohort had strong profits as prices peaked above $70K,” it commented.

In further contrast to the golden days of the bull run just months ago, traders are sitting on unrealized losses of 17% – the most since the pit of the last Bitcoin bear market in December 2022.

Bitcoin Miners Keep Up Sales

CryptoQuant additionally noted that miners remain in a “capitulation” phase, with operators likewise struggling to break even following April’s block subsidy halving.

Smaller miners in particular have been seen to quit the network amid a low hash price, taking hashrate lower.

“Large-size miners have sold about $300M since June 20, while mid-size miners have unloaded around $500M on a cost-basis,” the report now confirms.

In a post on X (formerly Twitter) on July 9, CryptoQuant CEO Ki-Young Ju calculated that crypto markets could be “boring for the next 2-3 months.”

“Stay long-term bullish but avoid excessive risk,” he suggested.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.