Emily Walker
Recent blockchain intelligence indicates that Bitcoin investors who bought at high prices are now selling off their assets as BTC dips below $93,000.
Short-Term Bitcoin Holders Are Experiencing Losses
An analysis from CryptoQuant reveals that the recent decline in Bitcoin has sparked fear among short-term holders, defined as investors who acquired their coins within the last 155 days. This group often comprises newer investors and traders, typically seen as the more vulnerable segment of the market. Those who can hold onto their Bitcoin without selling for over 155 days graduate to the status of long-term holders.
As the market has plunged again, short-term holders are responding by selling off their assets in a panic. While this reaction is not unusual, the specific segment of short-term holders involved in the selloff offers some insight.
The shared metric known as the “STH Profit Loss to Exchanges” illustrates whether short-term holders are transferring their assets to exchanges at a profit or a loss. This metric is significant since most investors utilize centralized exchanges for selling transactions.
Below is the chart depicting the STH Profit Loss to Exchanges from recent days:
The chart indicates a notable negative trend in the Bitcoin STH Profit Loss to Exchanges coinciding with Bitcoin’s price falling below $93,000. This trend reveals that many of these investors are experiencing losses. Since the prices remain higher than historical lows, only those who bought at the peak prices would be at a loss now.
The sharp drop seen in the indicator suggests that some of these newer investors are beginning to abandon their positions. Past capitulation events have often signaled price bottoms for Bitcoin, as weaker investors tend to sell off during these moments.
However, it is uncertain whether the current level of short-term holder selloffs will be sufficient to establish a bottom for Bitcoin’s price.
Additionally, there has been noteworthy selling from long-term holders, as noted by the on-chain analytics company Glassnode.
However, unlike short-term holders, long-term holders have seen large profits from their investments, making their selling activity distinct.
Current BTC Price
Bitcoin briefly fell below $92,000 earlier today but has made a slight recovery, currently trading around $92,600.