If You’ve Lost Money Investing in Crypto, You May Be a Bad Investor

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Contributor, Benzinga
July 14, 2021

Recent data collected from Glassnode shows 70% of Bitcoin’s supply is in profit, while almost 80% of Ethereum’s supply is in profit. If you’ve lost money on either of these cryptocurrencies, you’re likely in the minority of crypto investors.

Percent of Bitcoin’s Supply Currently In Profit

The above graph shows Bitcoin’s price (in black) juxtaposed on the percent of held Bitcoin that is currently in profit (in orange). Of course, as Bitcoin’s price reaches new all-time highs, the percent of holders in profit will increase. 

Despite Bitcoin plummeting 50% in value, about 70% of Bitcoin in existence are held in profit. Not only this, but on-chain data suggests that those who have sold their Bitcoin in the recent months were short-term holders selling at a loss. 

The data shows even more impressive statistics regarding the 2nd largest cryptocurrency by market capitalization, Ethereum (ETH). Since about 5% of Ether’s supply is locked into its Proof of Stake testnet, there’s less Ether available to be sold on exchanges. Even more, Ether is used in decentralized applications (dApps) which further reduce sell-side supply. 

Percent of Ethereum’s Supply In Profit

The blue line corresponds to the left Y-axis, and it measures the percent of Ethereum’s supply that’s in profit. Currently, about 80% of the total supply of Ether (about 93 million Ether) is in profit from when it was purchased. This means that only 20% of Ethereum has been bought at higher prices and is currently net-negative on their investment.
If you’ve lost money on crypto, don’t be disheartened. While these metrics show the percent of total supply in profit, it’s likely that the percent of holders in profit is not quite as high. This is due to high net worth cryptocurrency investors holding their digital assets over the long term. Naturally, these long-term investors hold a higher proportion of Ether’s supply than new investors.

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