Satoshi Nakamoto Faces $20B Unrealized Loss After Bitcoin Market Correction

Satoshi Nakamoto, the pseudonymous creator of Bitcoin, has taken an unrealized loss of over $20 billion following the recent cryptocurrency market downturn. 

Despite the drop, Nakamoto remains the world’s largest Bitcoin holder, controlling wallets that contain more than 1 million BTC, valued at approximately $117.5 billion, according to data from Arkham Intelligence.

Bitcoin Turbulence Wipes Out Record Gains

At the beginning of October, Bitcoin surged to a new all-time high above $126,000, pushing Satoshi’s holdings to an estimated $136 billion. However, those gains were quickly erased when crypto markets suffered a sharp sell-off on October 8, triggered by cascading liquidations in the perpetual futures market.

The sell-off began after U.S. President Donald Trump posted about potential new tariffs on China, reigniting fears of a trade war. The announcement sent shockwaves through global markets, leading to over $20 billion in crypto liquidations, the largest single-day wipeout in the industry’s history. 

Some altcoins saw declines exceeding 99%, while Bitcoin demonstrated relative strength by holding above the $100,000 threshold.

Market observers described the event as a “liquidity cascade,” where thin market conditions and high leverage amplified the downturn. Despite the historic losses, analysts maintain that the crash does not signal a change in Bitcoin’s long-term fundamentals.

Short-Term Decline, Long-Term Strength

Analysts from The Kobeissi Letter, a leading macroeconomic research firm, emphasized that the October 8 correction was a temporary setback rather than a fundamental shift in the crypto market’s outlook.

“The market crash that began on October 8 is only a short-term decline and does not have long-term fundamental implications,” the analysts wrote. They pointed to excessive leverage, thin liquidity, and panic-driven trading as the main drivers behind the sudden sell-off.

“We think a trade deal will be reached, and crypto remains strong. We are bullish,” the firm added.

Earlier this month, The Kobeissi Letter noted that Bitcoin’s record high coincided with the weakest U.S. dollar performance since 1973, suggesting that a significant macroeconomic transition may be underway. 

Interestingly, both risk-on assets like equities and store-of-value assets such as gold and Bitcoin have risen simultaneously. This is a rare occurrence that, according to the analysts, underscoring a broader shift in global market dynamics.

While the recent correction erased some of Bitcoin’s paper gains, analysts argue that its resilience above six figures point to maturing market conditions.