Are Top Crypto Buyers Still Underwater? Here’s What The Data Says

Key Highlights:$298M liquidated as BTC and ETH fail to hold key levels, shaking out leveraged longs.XRP trades 11% above the realized price while most altcoin buyers remain underwater.Bitcoin dominance rises as Altcoin Season Index drops to 25, signaling capital caution.In the past 24 hours, trader positions worth almost $298 Million were liquidated, with Bitcoin and Ethereum leading the way.Liquidations were $98.45 million on Bitcoin and $63.82 Million on Ethereum. Both assets struggled to hold above essential levels, resulting in these forced sell-offs.Crypto Heat map | Source: CoinglassTraders often use high leverage, and prices move quickly in the opposite direction in liquidation events like this.The sudden dip caused many long positions to fall below their liquidation thresholds, automatically exiting. This led to a sharp reset in open interest and a cooling in speculative activity in the market.Mid-Term Buyers Face Losses While XRP Remains in ProfitData from Glassnode shows how recent buyers are positioned by looking at the realized price by age. For Bitcoin, the cost basis for holders in the 3–6 month age range is around $95,000.As these holders hold slightly below this price, they’re experiencing a 1% unrealized loss. For the 6–12 month group, Ethereum buyers have an average entry of $1,800.With prices well below that level, they’re losing an average of 36%. Solana buyers from the past 3–6 months are facing losses, with a realized price of $146. Their average drawdown stands at approximately 28%, highlighting the market’s recent downturn.Source: XXRP, however, stands out. The 3–6 month group’s realized price is $2.14, and the current market value is still about 11% higher.This has made XRP holders profit from that period, which is a strong showing relative to other significant assets. Recent buyers seem to be still confident in XRP’s ability to trade above its cost basis.Long-Term Holders Still in Strong ProfitMid-term buyers are mixed, but long-term data shows Bitcoin’s broader holder base is still in good shape. According to Glassnode, 88% of all BTC in circulation is in profit.In other words, most holders bought at prices below market value even after recent pullbacks.Bitcoin percent supply in profit oscillator | Source: glassnodeThe profitability of this is so high that it reduces pressure to sell. This is because holders are less likely to exit when sitting on gains.Recently, the percentage of supply in profit bounced from its long-term mean of 75%. This indicated long-term investors continue to be convinced.Historical patterns indicate that when the supply of profit stays high, selling tends to slow. It allows markets to stabilize and recover. Newer buyers may be underwater, but a solid base of profitable holders supports the broader market.Bitcoin Leads as Altcoin Momentum SlowsCapital rotation is also apparent in the broader market. Currently, the Altcoin Season Index, which tracks whether capital moves from Bitcoin into altcoins, is at 25. This is well below the 75 threshold, denoting an altcoin-driven market phase.Altcoin season index chart | Source: CoinMarketCapBitcoin dominance is still high, and the market cap of alt tokens hasn’t seen a meaningful bounce. Bitcoin remains dominant, consistently outperforming Ethereum across multiple timeframes.Meanwhile, SOL, despite its earlier rally, has dropped significantly below the cost basis for many recent buyers, reflecting market corrections. This is a cautious market that still prefers Bitcoin over riskier assets.Bitcoin tends to hold up better during uncertainty or consolidation, while altcoins tend to lag. If capital flows do not begin to shift, altcoins may continue to have a hard time regaining strength.Meanwhile, XRP’s outperformance on a realized price basis indicates not all altcoins are acting the same. This implies that while some parts of the market are still under pressure, some segments are already stabilizing.Market data indicates that short-term price movements remain unpredictable and volatile. However, long-term holders are still profitable, holding onto their positions rather than selling.On the other hand, many mid-term buyers in BTC, ETH, and SOL are underwater. They may not be able to buy pressure unless prices recover above their cost basis.XRP remains the exception, trading well above its recent average buy price and showing some relative strength.Liquidations are removing excess leverage from the market while Bitcoin maintains its lead over altcoins. In the coming days, market sentiment may face further challenges across significant assets as volatility persists.DisclaimerIn this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.godfrey mwirigiThe post Are Top Crypto Buyers Still Underwater? Here’s What The Data Says appeared first on The Market Periodical.