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Bitcoin News

40% of Bitcoin Holders Are in Red: Could a 2022 Bear Be Returning?

BTC is trading around $73,469 after a sharp one-year decline, while a trader’s warning on holder losses has renewed debate over whether Bitcoin faces a reset or deeper bear phase.

Written By:
Jahnu Jagtap

Last updated: 49 minutes ago
Published 59 minutes ago
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Last updated: 49 minutes ago
Published 59 minutes ago
40% of Bitcoin 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 traded at $73,469.05, down 31.65% over the past year, as fresh market fear spread after crypto trader Senzu claimed that 40% of Bitcoin holders are “in red.” The claim has revived debate over whether BTC is entering a deeper bear phase similar to the 2022 downturn.

According to CoinMarketCap data Bitcoin’s market capitalization at $1.47 trillion, up 1.11%, while 24-hour trading volume stood at $31.19 billion, down 26.55%. BTC’s fully diluted valuation was shown at $1.54 trillion, with circulating supply near 20.03 million BTC.

The data appeared alongside a weekly Bitcoin chart showing BTC sharply below its late-2025 high, with price hovering near the $73,000 zone after a steep decline from above $120,000.

Trader Says Pressure Looks More Like Uncertainty Than Collapse

In a post on CoinMarketCap, Senzu said the latest pressure appears to be coming “from uncertainty more than collapse,” adding that traders are nervous, leverage is being wiped out, and market participants are questioning whether the current Bitcoin cycle has already peaked.

The trader added that heavy fear often appears before confidence returns. According to the post, downside volatility could still rise quickly if panic spreads further. However, if long-term buyers keep absorbing supply quietly, the current phase could later look more like a brutal market reset than the start of another full bear market.

BTC Chart Shows Weak Momentum After Sharp Decline

The Bitcoin chart shown on CoinMarketCap displayed BTC trading near $73,469, with weekly price action still under pressure. The chart showed a major decline from the 2025 peak above $120,000, followed by weak rebound attempts and renewed selling near the $70,000–$80,000 range.

The latest weekly candle showed BTC down $3,512, or 4.56%, with the displayed range showing a weekly high near $77,990.86 and a low near $72,441.22.

Volume was shown near 199.76 billion on the chart panel, while the broader structure still reflected lower highs after the late-2025 top. For traders, the immediate question is whether BTC can hold the low-$70,000 region or slip toward deeper support if selling pressure continues.

May Monthly Close Becomes Key Bitcoin Test

Another market post added a monthly-close angle to the debate. Rand Group noted that Bitcoin has never had three consecutive green monthly closes in a bear market, while warning that BTC had “lost the monthly open” with four days left before May closes.

The post framed May’s close as a potential history-making setup. If Bitcoin manages to finish the month green despite the latest weakness, it would challenge the bear-market comparison. But a red monthly close would strengthen the view that the latest bounce was losing momentum.

The monthly return table shared in the post showed Bitcoin’s 2026 monthly performance flipping between sharp losses and recoveries. January and February were shown in red, March and April turned green, while May was still slightly negative at the time of the post. That puts the final May close at the center of the short-term market debate.

Could Bitcoin See a 2022-Style Bear Market?

The 2022 Bitcoin bear market was driven by a broader collapse across leverage, centralized lenders, crypto credit, and exchange confidence. The current setup appears different based on the trader’s post, with the pressure framed around uncertainty, holder losses, and leverage reduction rather than a system-wide collapse.

Still, the comparison matters because a high share of holders in loss can deepen fear, weaken sentiment, and increase the risk of panic selling. At the same time, holder losses can also appear near reset zones if long-term buyers begin absorbing supply from weaker hands.

For now, Bitcoin is caught between two narratives. One side sees the latest drop as a warning that the cycle has peaked. The other sees it as a painful but necessary reset after excess leverage and overheated expectations.

What Bitcoin Traders Are Watching Next

Bitcoin traders are now watching whether BTC can defend the $70,000–$73,000 area and reclaim momentum above the recent breakdown zone. A stronger recovery above the $80,000 region would help ease bearish pressure and suggest that buyers are returning.

However, failure to hold the low-$70,000 range could strengthen the bear-market comparison and expose BTC to another wave of downside volatility.

For now, the market’s next move depends on whether panic selling continues or long-term buyers absorb supply strongly enough to turn the latest decline into a reset rather than a repeat of 2022.

Also Read: CFTC Approves Kalshi Bitcoin Perpetual Futures Contract

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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Jahnu Jagtap - Crypto Research Analyst at The Crypto Times
By Jahnu Jagtap
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Jahnu Jagtap is a Research Analyst with over 5 years of experience in crypto, finance, fintech, blockchain, Web3, and AI. He holds a BSc in Mathematics and is certified in Blockchain and Its Applications (SWAYAM MHRD), Cryptocurrency (Upskillist), and NISM Certifications. Jahnu specializes in technical, on-chain, and fundamental analysis, while also closely tracking global macro trends, regulations, lawsuits, and U.S. equities. With a strong analytical background and editorial insight, he drives content that delivers clarity and depth in the fast-evolving world of digital finance.

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