Satoshi Nakamoto, the anonymous founder of Bitcoin (BTC), currently holds the largest amount of BTC globally, with the wallets under Nakamoto experiencing an unrealized loss exceeding $20 billion since reaching an all-time high of over $126,000 in early October.
Nakamoto’s Bitcoin holdings exceed 1 million BTC, valued at more than $117.5 billion as of now, according to data from Arkham Intelligence.
The portfolio ballooned to over $136 billion during Bitcoin’s surge to new all-time highs exceeding $126,000 in the first week of October.
However, the crypto markets faced turmoil due to cascading liquidations in the perpetual futures market on October 8, triggered by a post from US President Donald Trump indicating increased tariffs on China, heightening investor concerns regarding a possible trade war.
This market downturn led to $20 billion in liquidations, marking the most severe 24-hour liquidation event in crypto history, causing significant price drops, with some altcoins plummeting over 99%. Nevertheless, Bitcoin demonstrated resilience, staying above the $100,000 mark.
Related: Precious metals trade ‘overheated,’ investors to rotate into BTC: Analyst
The market crash is a temporary setback, not a fundamental reassessment
The downturn that began on October 8 is considered a short-term decline and “does not have long-term fundamental implications,” according to investment analysts at The Kobeissi Letter.
A variety of technical factors contributed to the market crash, including excessive leverage and thin market liquidity that amplifies volatility and intensifies the impact of rapid, large shifts, as noted by The Kobeissi Letter wrote.
“We believe a trade deal will eventually be reached, and the crypto market remains robust. We are optimistic,” the analysts stated.
Just days prior, The Kobeissi Letter pointed out that Bitcoin’s all-time high coincided with the US dollar experiencing its weakest year since 1973, indicating a significant macroeconomic shift.
Moreover, prices of risk-on assets are rising alongside store-of-value and bearer assets like gold and BTC, a rare occurrence as these asset types usually move in opposition, supporting the Kobeissi analysts’ macroeconomic thesis.
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