January 27, 2023

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

Over the past decade, Bitcoin [BTC] remained in place as one of the most profitable assets to hold despite a series of price declines. Though it may no longer be the case for active king coin traders who have held on for the past five years, especially as the average gains hit the neutral zone on June 9.


Read Bitcoin [BTC] Price forecast 2023-2024


According to Santiment, the struggle to achieve a sustained revival now faces a new challenge. This was because the on-chain analytics platform agreed with a Reddit publication that five-year holders are now losing money.

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

No assistance available for underwater exit

In addition to the dwindling result of loyalty, Bitcoin also collapsed on its overall drive for compensation. Glassnode data, at the time of writing, revealed that delivery in profit amounted to 10.71 million BTC.

According to the information presented, this represented a decrease from its value on November 7, even in the wake of the FTX brouhaha. As a result, BTC trade below $17,000 meant the prize was less than the value the average holder had accumulated.

Bitcoin stock in profit

Source: Glassnode

Nevertheless, a short-lived reprieve for holders has existed since a number of analysts suggested that the BTC bottom was in or extremely close. At the same time, BTC could find it challenging to pull holders out of the aforementioned double-digit decline.

Elsewhere, Bitcoin’s long-term circulation was marked by deformities. This was because data from Santiment showed that the five-year coin distribution withdrawn to 14.15 million. An explanation for this situation was that the supply was not at its peak. In addition, coins used within the spell refused to switch hands multiple times.

In the shorter period, it was swing competition for long-term investors who rarely traded their positions. At the time of writing, dormant circulation had fallen from 365 days to 737. The simplification translated into a refusal to sell in the face of dwindling profits and a rough market environment.

Bitcoin dormant circulation and five-year circulation

Source: Sentiment

When does respite come back?

Moving forward, Bitcoin’s volatility stalled and languished in extremely low regions. Information available at time of going to press indicated that the increase was modest at 0.02. In particular, a rising volatility index, if sustained, could indicate a buying opportunity.

However, the same situation is usually accompanied by market fear. Therefore, it may be preferable to err on the side of caution before scooping up BTC. For the z-score Market Value to Realized Value (MVRV), Santiment showed that it fell to -0.216.

Without going too far, this score provides an assessment of BTC’s undervalued or overvalued state in relation to its market cap and realized. In its position, it outlined a possible opportunity to find a buying strategy.

Bitcoin price volatility and MVRV z score

Source: Sentiment

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