Key Points
- New custodial wallets and ETF holders are facing losses in Bitcoin investment, according to CryptoQuant CEO Ki Young Ju.
- Long-term investors and mining firms are currently making substantial profits.
Ki Young Ju, the CEO and founder of CryptoQuant, an on-chain market intelligence platform, has shared insights into disparities in Bitcoin profitability.
In a recent post on X (formerly Twitter), he analyzed three different groups, including miners, traders, and investors, and compared the prices they bought Bitcoin at with its present price of $57,000.
Profitability among Different Bitcoin Investors
Young Ju’s analysis suggests that only new custodial wallets and exchange-traded fund (ETF) holders are currently experiencing losses.
He argues that long-term investors and mining companies are currently enjoying significant profits.
According to Young Ju, custodial wallets and ETF holders, who entered the market at an average purchase price of $62,000 per Bitcoin, are suffering a 6% loss on their investments at current prices.
However, Bitcoin traders, who bought the asset at an average price of $55,000, currently have a modest 3% profit.
Mining firms, who secured their Bitcoin at an average price of $43,000, are sitting on a 32% profit margin.
Notably, the biggest gainers are the old whales, individuals or corporations that have held their crypto for many years.
With an average cost basis of just $27,000 per Bitcoin, these investors are currently seeing an outstanding 106% return on their investments.
This significant profit disparity between old investors and new market entrants demonstrates the benefits of a long-term strategy in the highly volatile crypto market.
Current State of the Market
At the time of writing, Bitcoin was trading at $58,164, up 0.20% over the last 24 hours.
Despite this slight gain, it’s clear that recent market entrants are still struggling.
In contrast, older investors are experiencing more profits amid the current price fluctuations.
Undoubtedly, more price swings will occur as the market continues to adjust.
However, as the crypto space continues to evolve with its unique characteristics, the division between profits and losses is likely to remain very distinct, especially for those who entered the market at Bitcoin’s most recent peak.
