Bitcoin Two-Year Holders Fall into Extreme Losses as Price Eyes Major Reset
Analysis
Price Impact
HighThe article suggests that bitcoin is at a critical juncture where a significant portion of holders (those who bought in the last two years) are experiencing losses. this situation has historically preceded major market turning points and resets. the widespread unrealized losses among recent buyers could indicate a potential bottoming out and setup for a strong recovery.
Trustworthiness
HighThe analysis is based on data from cryptoquant, a reputable crypto analytics platform, and historical market cycle patterns. this provides a solid foundation for the conclusions drawn.
Price Direction
BullishWhile the immediate price action is weak, the article highlights that major rallies often begin when losses become widespread and market confidence is shaken, which is the current scenario. the "extreme losses" for a significant group of holders could paradoxically signal an upcoming strong recovery.
Time Effect
LongThe article refers to historical market cycles and the behavior of two-year holders, indicating that the potential reset and recovery could take a significant amount of time to fully materialize rather than being an immediate event.
Original Article:
Article Content:
Cover image via U.Today Bitcoin on verge of major reset Bitcoin’s long-term holders still in profit Advertisement Bitcoin has continued to face a severe price correction as its price fails to reclaim levels seen earlier in the year. Amid the prolonged price correction, the asset has continued to approach critical levels, with most investors who purchased BTC within the last two years now sitting at a loss. A recent analysis provided by crypto analytics platform CryptoQuant shows that as the Bitcoin price hovers near the $60,000 region, the average cost basis of Bitcoin investors holding the asset for 18-month to 2-year holders is being tested. HOT Stories XRP Yield Risks Explained by XRPL Contributor, Schiff Acknowledges Satoshi's Innovation With Bitcoin, Six Macro Events to Define Crypto Market This Week: Morning Crypto Report Ethereum’s Massive Slump Continues With Sixth Straight Red Month Source: Cryptoquant Bitcoin on verge of major reset With Bitcoin’s two-year-old buyers now underwater, the asset is now at a level that has historically marked major turning points in historic market cycles. Advertisement The prolonged market volatility has weakened Bitcoin’s price action, pushing a large portion of midterm holders into negative territory while shifting overall sentiment from cautious optimism to extreme doubt. You Might Also Like Mon, 03/02/2026 - 12:36 Founder of Major Bitcoin Mining Pool Linked to Large ETH Position as Price Is Under $2,000 By Gamza Khanzadaev While the majority of Bitcoin holders are in losses, it has been observed that major corrections tend to intensify when the majority of participants are in profit. This often leads to further price pullbacks. Advertisement On the other hand, strong rallies have often begun when losses become widespread and market confidence is shaken, as seen currently. This means that the massive losses unrealized by Bitcoin holders could precede a major price recovery. Bitcoin’s long-term holders still in profit Nonetheless, it is important to note that long-term holders who accumulated years ago are still in profit, despite the prolonged market volatility that has kept Bitcoin in red over the past few months. However, recent buyers, especially those who bought during the later stages of the last rally, are now facing mounting unrealized losses. These recent buyers could face bigger losses If Bitcoin decisively drops below $60,000. The positive side is that it could be a potential opportunity for a possible “reset,” phase where excessive optimism is completely eliminated and creates a chance for a healthier environment that could fuel a sustainable recovery. #Bitcoin #Bitcoin Price Prediction #CryptoQuant