COINOTAG News cites on-chain analyst Murphy, who observed that markets reacted ahead of Powell’s speech, nudging Bitcoin down to roughly $112,000 — a level that aligns with the reported average cost basis for BTC held for less than 3 months.
Murphy’s on-chain assessment notes that short-term BTC holders are the most active and sentiment-sensitive cohort; a breach of their cost line converts unrealized gains into losses and generates meaningful psychological pressure. Because many of these investors sit near breakeven, their reluctance to sell can act as temporary support and dampen immediate downside, shaping near-term market sentiment toward anxiety rather than widespread capitulation.