Satoshi Nakamoto's Bitcoin Holdings Plummet by $20 Billion Amid Market Turmoil

Satoshi Nakamoto's Bitcoin Holdings Drop Significantly

Satoshi Nakamoto, the enigmatic creator of Bitcoin (BTC), holds the largest BTC portfolio globally. As of now, Nakamoto's holdings have seen an unrealized loss exceeding $20 billion since Bitcoin's peak price of over $126,000 in early October.

According to data from Arkham Intelligence, Nakamoto's Bitcoin stash exceeds 1 million BTC, valued at approximately $117.5 billion currently. This portfolio reached over $136 billion during Bitcoin's rally in the first week of October.

Market Volatility and Economic Factors

The crypto market experienced a significant downturn on October 8, driven by cascading liquidations in the perpetual futures market. This was sparked by a statement from US President Donald Trump regarding increased tariffs on China, which ignited fears of a trade conflict.

This market decline resulted in a record $20 billion in liquidations, marking the worst 24-hour liquidation event in crypto history. Despite this, Bitcoin maintained a level above $100,000, showing some resilience amidst the broader market crash.

Temporary Setback, Strong Fundamentals

Investment analysts at The Kobeissi Letter suggest that this market crash is a temporary setback without long-term fundamental implications. Contributing factors included excessive leverage, thin market liquidity, and Trump's announcement.

Analysts maintain a positive outlook, anticipating a trade agreement and continued crypto strength. Notably, Bitcoin's all-time high aligned with the US dollar's weakest performance since 1973, indicating a significant macroeconomic shift.

Furthermore, the simultaneous rise in risk-on assets and traditional store-of-value assets like gold and BTC is unusual, supporting the analysts' broader economic thesis.