Satoshi Nakamoto, the anonymous creator of Bitcoin (BTC) and holder of the largest single Bitcoin stash, has seen the value of their portfolio decline significantly following a recent market downturn.
According to data from Arkham Intelligence, Satoshi’s Bitcoin wallets contain over 1 million BTC. At the peak during early October, when Bitcoin hit an all-time high above $126,000, the portfolio was valued at more than $136 billion. Currently, the estimated worth stands at approximately $117.5 billion, marking an unrealized loss exceeding $20 billion from the recent peak.
The dramatic shift in value coincided with a sharp market correction that began on October 8. A key trigger was a social media post by former US President Donald Trump announcing potential new tariffs on China, which heightened concerns about a revived trade conflict. This announcement ignited a widespread selloff, particularly in the perpetual futures market, leading to cascading liquidations totaling $20 billion—the largest 24-hour liquidation event in crypto history.
The fallout sent prices plunging across the board, with some altcoins experiencing declines of over 99%. Despite this turmoil, Bitcoin demonstrated relative resilience by maintaining a price level above $100,000 throughout the crash.
Investment analysts at The Kobeissi Letter emphasized that although the crash triggered significant losses, it is viewed as a short-term event without long-term fundamental impacts. They attributed the volatility to several technical factors including elevated leverage within derivative markets, limited liquidity contributing to price swings, and the geopolitical tension sparked by the US-China tariff announcement.
Analysts remain optimistic, with The Kobeissi Letter expressing confidence that a trade resolution will occur and that cryptocurrency markets will retain their strength. They also noted that Bitcoin’s record high coincided with the US dollar experiencing its weakest annual performance since 1973, highlighting important macroeconomic shifts underpinning the cryptocurrency’s value.
Interestingly, the analysts pointed out an unusual market dynamic: prices for risk-on assets rose alongside traditional stores of value like gold and Bitcoin. This simultaneous upward movement is atypical, as these asset classes generally move in opposition, reinforcing the significance of current macroeconomic trends.
Overall, while the market disruption led to dramatic unrealized losses for the largest Bitcoin holder, experts assert that the incident reflects temporary technical and geopolitical factors rather than a fundamental reassessment of Bitcoin’s long-term prospects.
