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 Despite a loss of nearly 30%, long-term investors still bought more Bitcoin when the price moved sideways at the $19,000 mark.

According to blockchain data, the number of wallet addresses accumulating Bitcoin grew steadily during the bear market. This indicator shows wallets that have at least 2 received funds and have not yet distributed any Bitcoins.

 

Unlike previous downturns, long-term investors are not affected by the current bear market. Before that, the number of Bitcoin wallet addresses was flat and declined during the bear market. In 2022, the number of wallet addresses with balances above zero increases from 39.6 million to 42.7 million. This shows that the number of users is still growing sustainably during the off season.

 

According to CoinTelegraph , as of September 22, about 30% of long-term Bitcoin investors are experiencing losses. This index is 3-5% lower than it was when Bitcoin bottomed. In March 2020, the Bitcoin price dropped to $4,000 due to the impact of the Covid-19 epidemic. The long-term investor’s loss increased to 35%.

 

Similar to the December bottom, long-term investors also suffered a loss of 32%. After these two bottoms, the market entered a sudden and sustainable growth cycle. As a result, the number of long-term investors losing money tends to peak in the 30%–40% range. In other words, according to CoinTelegraph , the Bitcoin price is still likely to fall to $ 10,000-14,000 , to establish historic losses for the long-term investor.

 

The profitable performance of the digital asset market in the first half of 2022 is a challenge for investors. BTC price is down 75% from its all-time high and ETH is down more than 80%. In particular, June was one of the worst months on record for both asset classes.

 

Compared to past data, Bitcoin has had a lower drop than previous cycles. According to CoinMarketCap , BTC is down 93% from its all-time high (ATH) during the 2011 bear market. Subsequent drops are 84% in 2015 and 2018 and 75% in March 2020. In previous bear markets, the Bitcoin price has all dropped below the actual price in an average of 180 days.