Short-Term Bitcoin Holders Face Historic Losses

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During the recent market downturn, the price of Bitcoin witnessed one of its worst corrections after the digital asset reached a 54% drop, even worse than the bear market of 2017. As a result, short-term Bitcoin owners are facing the heat.

Glassnode data indicates a sharp increase in the losses of short-term owners of BTC. According to the company, the profitability of Bitcoin owners has deteriorated to record low levels. “BTC’s Relative Unrealized Profit (7d MA) recently reached a 15-month low of 0.491,” Glassnode noted.

Several key indicators of the Bitcoin network also paint the same picture. The net BTC exchange inflow reached its highest level in 4 weeks on Wednesday, highlighting that Bitcoin holders are handing over their digital assets to crypto exchanges for sale.

“Short-term holders currently hold historically large unrealized losses. The STH-NUPL metric tracks an overall unrealized loss held by the STH cohort, in proportion to the market cap. A value of -40% coincides with some of the deepest sales in history. With BTC trading down more than 50% of ATHs, investment profit has deteriorated, and significant losses are being realized on the ground, ”Glassnode emphasized.

Crypt Handles

The latest trend of long-term BTC holders shows a completely different picture. While short-term owners of the most dominant digital asset are selling under pressure, long-term owners are actually buying the BTC dip.

“Interestingly, STH supply remains close to multi-year declines, which is indicative of their counterpart, the Long-Term Holders (LTHs), which appear impressively undisturbed by such a severe decline. The proportion of LTH supply has actually returned to a modest upward trend, indicating “In the face of what looks like a bear market, LTH currencies are firmly in cold storage, which remains a building block,” the company added in its statement. report.

During the recent market downturn, the price of Bitcoin witnessed one of its worst corrections after the digital asset reached a 54% drop, even worse than the bear market of 2017. As a result, short-term Bitcoin owners are facing the heat.

Glassnode data indicates a sharp increase in the losses of short-term owners of BTC. According to the company, the profitability of Bitcoin owners has deteriorated to record low levels. “BTC’s Relative Unrealized Profit (7d MA) recently reached a 15-month low of 0.491,” Glassnode noted.

Several key indicators of the Bitcoin network also paint the same picture. The net BTC exchange inflow reached its highest level in 4 weeks on Wednesday, highlighting that Bitcoin holders are handing over their digital assets to crypto exchanges for sale.

“Short-term holders currently hold historically large unrealized losses. The STH-NUPL metric tracks an overall unrealized loss held by the STH cohort, in proportion to the market cap. A value of -40% coincides with some of the deepest sales in history. With BTC trading down more than 50% of ATHs, investment profit has deteriorated, and significant losses are being realized on the ground, ”Glassnode emphasized.

Crypt Handles

The latest trend of long-term BTC holders shows a completely different picture. While short-term owners of the most dominant digital asset are selling under pressure, long-term owners are actually buying the BTC dip.

“Interestingly, STH supply remains close to multi-year declines, which is indicative of their counterpart, the Long-Term Holders (LTHs), which appear impressively undisturbed by such a severe decline. The proportion of LTH supply has actually returned to a modest upward trend, indicating “In the face of what looks like a bear market, LTH currencies are firmly in cold storage, which remains a building block,” the company added in its statement. report.

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