Bitcoin’s (BTC) long-term profitability has declined to levels last seen during the previous bear market in December 2018. According to data shared by crypto analytic firm Glassnode, BTC holders are selling their tokens at an average loss of 42%.
The Glassnode data indicate that long-term holders of the top cryptocurrency selling their tokens have a cost basis of $32,000, meaning the average buying price for these holders selling their stack is above $30,000.
The current market downturn added to the declining profitability can be attributed to several macroeconomic factors. The BTC market still has a heavy correlation with the stock market, especially tech stocks, which are currently seeing an even bigger downtrend than crypto.
The rising inflation added to central banks’ failure to control it has also added to the pain of BTC investors. With much less to invest at their hands, traders and long-term holders are shifting to short-term…