Bitcoin Whales Face Losses While Small Investors Stay Profitable

The latest Bitcoin (BTC) decline has not impacted all investor groups equally, according to an analysis by on-chain data platform Glassnode. While large wallet groups slipped into losses during the June low, smaller investors managed to stay profitable. At the June low, Bitcoin's price fell below the average cost basis of large wallet groups, but wallets holding less than 1 BTC remained well above their $48,000 cost basis.

As the price recovered, large investor groups moved back above their cost bases. At the latest point on the chart, Bitcoin is trading at $85,900. The analysis classifies wallets holding 100-1,000 BTC as 'sharks' and those holding 1,000-10,000 BTC as 'whales.' The average cost bases for these two groups are $67,500 and $62,100, respectively. The average cost basis across all wallets is measured at $52,700.

The small-wallet group’s lower cost basis allowed it to preserve unrealized profits during the June decline. In contrast, large groups faced unrealized losses during the same period. This dynamic differs significantly from the 2022 bear market, when Bitcoin fell below the average cost basis of every investor group tracked.

During the 2022 bear market, all investor groups fell below their cost bases. This time, only sharks and whales experienced losses at the June low. Despite large wallets falling into loss during the latest decline, the small-wallet group remained profitable, a key distinction between the two periods.