Bitcoin creator’s 1 million BTC stash takes a hit as crypto markets face record liquidations, but analysts say fundamentals remain intact.
$20 Billion Wiped From Satoshi’s Bitcoin Holdings
The pseudonymous creator of Bitcoin (BTC), Satoshi Nakamoto, saw the value of their Bitcoin holdings decline by over $20 billion amid the recent crypto market crash.
According to Arkham Intelligence, Satoshi’s wallets — which collectively hold over 1 million BTC — are now valued at approximately $117.5 billion, down from $136 billion when Bitcoin reached its all-time high of over $126,000 in early October.
Despite the steep decline, Satoshi remains the largest Bitcoin holder in existence, controlling roughly 4.76% of the total BTC supply.
“The unrealized loss is significant, but it reflects a broader market correction rather than any change in Bitcoin’s fundamentals,” said analysts at The Kobeissi Letter.
Market Crash Fueled by Record Liquidations
The crash on October 8 was triggered by a wave of cascading liquidations in the perpetual futures market, following a post by U.S. President Donald Trump announcing new tariffs on China.
The statement reignited fears of a renewed trade war, sparking a chain reaction across financial markets.
Crypto suffered its worst-ever 24-hour liquidation event, with $20 billion wiped out from leveraged positions, and several altcoins plunging over 99%.
Bitcoin, however, showed relative resilience, managing to stay above the $100,000 mark, highlighting its continued dominance and investor confidence even amid extreme volatility.
Analysts Call the Drop “Temporary”
Investment analysts at The Kobeissi Letter emphasized that the crash was largely technical, not fundamental.
They cited a mix of excessive leverage, thin liquidity, and panic-driven liquidations as the primary causes.
“This is a short-term decline, not a reevaluation of crypto’s long-term potential,” the analysts said. “We think a trade deal will be reached, and crypto remains strong. We are bullish.”
They also noted that Bitcoin’s surge to new highs coincided with the weakest U.S. dollar performance since 1973, suggesting a major macroeconomic shift toward decentralized and store-of-value assets.
Bitcoin’s Strength Amid Volatility
Even after the sharp correction, Bitcoin’s technical and macro outlook remains favorable. The convergence of rising risk assets and store-of-value assets like gold and BTC indicates a broader global liquidity rotation, potentially supporting a continued bullish cycle once short-term volatility stabilizes.
While Satoshi Nakamoto’s Bitcoin fortune has shrunk by over $20 billion from its peak, the decline reflects market over-leverage and macro shocks rather than a loss of faith in Bitcoin. Analysts remain confident that BTC’s fundamentals — limited supply, institutional demand, and macro relevance — remain stronger than ever.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.