The crypto market has been struggling for a while now and with it the choice of Bitcoin has come down. As a result of this growing trend of low prices, profitability has declined across digital assets, both large and small, in space. For Bitcoin, the pioneer cryptocurrency has been hit particularly hard as its profitability has now dropped to a two-year low.

Bitcoin investors are struggling

Even with the recent price recovery, Bitcoin’s profits are at their worst level since 2020. What has happened is that prices have been falling for months and new investors have left their bags behind. As a result of the losses, profitability has now reached a level not seen since May 2020.

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Currently, only 54% of all Bitcoin investors remain profitable. Now, that means most holders are still in profit but compared to where this percentage has been in the last few months, it is clear that the fall has been huge.

Bitcoin price chart from TradingView.com

BTC price trending above $31,000 | Source: BTCUSD on TradingView.com

In total, there are only 24.77 million bitcoin addresses that are counting a profit. Another 20.04 million addresses are currently in red, which is now 44% of all bitcoin holders in the lost territory. This puts only 2.49% of BTC holders in the neutral zone, so only 1.14 million addresses contain BTC which was purchased at a price equivalent to the current market price.

Increased whale activity

Even with a two-year low, it has not stopped whale activity in the network. The number of large transaction activities has increased significantly in the last two days, increasing by more than 40% since Sunday to 19.62K large transactions in the last 24 hours.

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This indicates that whale activity is on the rise once again in the market After the weekend, their recent activity has followed a price recovery and this activity is expected to continue as Bitcoin settles above $ 31,000.

In terms of profits, the market continues to favor long-term holders. The data shows that the holder composition is 61% of those who have held for more than a year. Now, given the market growth in 2021, it is safe to assume that those who bought coins at the end of the year are currently at a loss. However, those who hold on before the bull rally begins will benefit strongly and will continue to do so even if Bitcoin drops another 50% from here.

Featured image from Plus500, chart from TradingView.com

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