As a reminder, unrealized profit is income from a trading position that has not yet been received. Accordingly, the owner of the coins in this case has not sold them, so the profit remains "on paper". The situation will change as soon as the cryptocurrency is sold. In that case, the profit will go from unrealised to realised.

We checked the current data: Bitcoin is trading in the $40,000 zone today. At the same time, on the four-hour chart of BTC, the first cryptocurrency value shows a steady decline from the local high of $48 thousand. Here it is.

The four-hour chart of Bitcoin exchange rate

Among the unprofitable investors, there are some big players as well. In particular, we’re talking about Terra’s Luna Foundation Guard, who plan to invest $10 billion in BTC. Yesterday they received 0.001 BTC. And judging by the blockchain data in the upper right corner, with Bitcoin at $40,479, the giant’s total investment is already at a loss.

Terra’s negative Bitcoin investment

Although the situation doesn’t look good, most BTC investors can still get rid of their own coins in the plus side.

What’s happening in the cryptocurrency market

According to Cointelegraph’s sources, between 70 and 75 BTC holders are still on the plus side. That’s quite a large number – and especially compared to the bearish trend of the crypto market in 2018. Back then, the figure hovered around 45 to 50 per cent of the total number of crypto investors in Bitcoin.

Accordingly, it was this proportion of investors who managed to buy the asset cheaper than the levels to which the first cryptocurrency fell.

Fluctuations in the number of investors with unrealised profits

Hence the conclusion: the current bearish trend is not so bad compared to the “crypto-zima” of 2018. Here’s a rejoinder from the experts, in which they share their view of what’s going on.

The current bearish trend is not as severe as the worst phases of all previous cycles. Only 25-30 per cent of the market is now in an unrealised loss. It remains to be seen whether further selling pressure will lead to further declines in cryptocurrencies and thus an even larger proportion of investors being in unrealised losses, as was the case in previous market cycles.

Those who bought bitcoins relatively long ago – more than 155 days ago – are considered long-term holders of the cryptocurrency in the report. Of those, around 67.5 per cent are able to sell the coins at a profit. But of those who bought BTC more recently, only 7.88 percent have unrealised gains. This category of investors was the least immune to market volatility due to the actual lack of Bitcoin price appreciation the day before.

The report also says that 58 per cent of transaction volume on the Bitcoin network is in what analysts call “profit dominance”. However, analysts highlight the following feature of the market at the moment.

Given that the price continues to struggle with growth, this suggests that demand remains somewhat “sluggish” and investors are locking in profits on any strong spurt in Bitcoin’s value.

Accordingly, some BTC holders in the current environment may not believe in a serious increase in the price of the major crypto-asset going forward, but still hope for some kind of rebound to get rid of the coins at better prices.

Profit transaction volume chart

Some more analysis was published by representatives of the CryptoCompare platform. Its experts tracked the increase in the market share of large centralized crypto exchanges: it rose from 89 percent in August 2021 to 96 percent in February 2022. In this case, more than 150 trading platforms were analysed, after which they were given grades ranging from a maximum “AA” to a minimum “F” – based on their security, number of trading pairs, relationships with regulators, user identity verification procedures and so on.

A total of 78 platforms received a ‘high grade’, with only Coinbase, Gemini, Bitstamp and Binance graded AA. In February, the top exchanges reviewed processed around $1.5 trillion in trading volumes, while smaller platforms only processed $62 billion of crypto traders’ transactions. According to CryptoCompare experts, this shows that more and more professionals and amateur traders trust the big brands in the cryptosphere.

Top 5 exchanges on CoinMarketCap

Since June 2019, as many as 54 exchanges have shut down due to non-competitiveness in the market, causing further consolidation of users on the highly ranked exchanges. In addition, a crackdown on cryptocurrencies in China resulted in the closure of six Chinese exchanges. Overall, all of the above leads to one outcome – the gradual die-off of “small players” and the emergence of an oligopoly of large trading platforms.

However, the situation will not necessarily evolve in this way, because there are plenty of new exchanges in the niche. One of them is Woo Network’s WOO X, which, among other things, offers spot trading and futures transactions without commissions.


We believe that this data from analysts indicates a positive trend in the cryptocurrency niche. Still, the owners of the mentioned addresses, who are on the plus side, are unlikely to get rid of coins at the current rate, as they probably have not done so at a higher price. Accordingly, the prospects of new sellers appearing on the market are relatively slim, which speaks in favour of a possible market recovery. However, as usual, it will depend on what is going on in the world.


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