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40% of <a href="https://jpykr.com/btc-usd/">Bitcoin</a> Holders Are in Red: Could a 2022 Bear Be Returning?

Key Highlights

  • Bitcoin traded at $73,469.05, down 31.65% over the past year, according to CoinMarketCap data shown in the screenshot.
  • A crypto trader claimed 40% of Bitcoin holders are in red, raising fresh concern over market stress.
  • The trader said current pressure appears driven by uncertainty, leverage wipeouts, and fears that the cycle has peaked.
  • BTC’s weekly chart showed weak momentum, repeated lower highs, and price trading far below its 2025 peak.

Bitcoin Trades Near $73,469 as Holder Loss Fears Rise

Bitcoin’s price recently hit $73,469.05, but it’s down 31.65% from a year ago. Concerns grew after a crypto trader, Senzu, stated that 40% of Bitcoin owners are currently losing money on their investments. This claim has sparked discussion about whether Bitcoin is starting a prolonged downturn like the one experienced in 2022.

Bitcoin’s market value is currently $1.47 trillion, a 1.11% increase. Over the past 24 hours, $31.19 billion worth of Bitcoin was traded, which is a 26.55% decrease in trading volume. The total value if all Bitcoin were in circulation is estimated at $1.54 trillion, and there are approximately 20.03 million Bitcoin in circulation.

Looking at the charts, Bitcoin’s had a pretty rough week. It’s way down from its peak around $120,000, and now it’s hovering around $73,000. It’s definitely a sharp drop compared to where it was at the end of 2025.

Trader Says Pressure Looks More Like Uncertainty Than Collapse

According to a CoinMarketCap post, Senzu believes the recent market downturn isn’t necessarily a crash, but rather stems from uncertainty. Traders are anxious, some highly leveraged positions are being closed, and people are wondering if Bitcoin has already reached the high point of its current price cycle.

The trader noted that strong fear often precedes a return to confidence. While there’s still a risk of prices falling quickly if panic increases, consistent buying from long-term investors could suggest we’re seeing a sharp, temporary market correction rather than the beginning of a prolonged downturn.

BTC Chart Shows Weak Momentum After Sharp Decline

According to CoinMarketCap, Bitcoin was trading around $73,469, and its price had been struggling over the past week. The chart indicated a significant drop from a high of over $120,000 earlier in 2025, with unsuccessful attempts to recover and further selling pressure between $70,000 and $80,000.

Bitcoin’s price fell by $3,512, or 4.56%, over the past week. The price fluctuated between a high of around $77,990.86 and a low of approximately $72,441.22.

Trading volume reached around 199.76 billion. However, the overall price trend still shows decreasing highs since the peak in late 2025. The main concern for traders now is whether Bitcoin can stay above $70,000, or if continued selling will push the price even lower.

May Monthly Close Becomes Key Bitcoin Test

A recent market analysis highlighted an interesting pattern with Bitcoin. Rand Group pointed out that historically, Bitcoin hasn’t seen three months of gains in a row during a downturn. They also noted that, with a few days remaining in May, Bitcoin was currently on track to close the month with a loss, based on its opening price.

As I’ve been following the market, May’s closing price feels particularly important for Bitcoin. If Bitcoin can end the month with a positive gain, even after this recent dip, it would suggest we might not be in a typical bear market. However, if the month closes with a loss, it would likely confirm that the recent price increase was losing steam.

The chart showed Bitcoin’s performance in 2026 was quite volatile, with significant gains and losses each month. January and February saw declines, followed by positive returns in March and April. At the time the post was written, May was still showing a small loss, and how it ultimately closed was a key point of discussion for traders.

Could Bitcoin See a 2022-Style Bear Market?

The 2022 Bitcoin price drop happened because of widespread problems with borrowing, lending, and trust in crypto exchanges. However, the current situation seems different. Instead of a total system failure, the recent pressure on prices seems to be coming from general uncertainty, investors losing money, and people reducing their risky bets.

Comparing the number of investors holding losing positions is important because a large percentage can create more fear and potentially lead to a sharp sell-off. However, if long-term investors start buying, these losses could signal a bottom and a potential price recovery as they take over from those looking to exit.

Right now, there are two main viewpoints on Bitcoin’s recent price drop. Some believe it signals the end of its current growth phase, while others see it as a healthy correction after a period of risky trading and unrealistic optimism.

What Bitcoin Traders Are Watching Next

As a researcher following the Bitcoin market, I’m currently observing whether BTC can hold its value around $70,000-$73,000 and start climbing again after the recent price dip. If we see a solid rebound, pushing prices above $80,000, that would indicate the selling pressure is easing and buyers are stepping back in, which is a positive sign.

If Bitcoin falls below the $70,000 level, it could suggest a worsening market trend and lead to further price drops.

Right now, where the market goes next hinges on whether sellers keep driving prices down, or if investors who plan to hold for the long term step in and buy enough to stabilize things – turning this dip into a healthy correction instead of another year like 2022.

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2026-05-29 19:19