Nearly All Short-Term Bitcoin Investors in Loss!

• According to a recent report by Glassnode, nearly 98% of short-term holders (STH) are now holding their assets in the red, marking the deepest level in the market since the FTX crash.
• Glassnode noted that the market has seen “moderate new investor entry.” However, analysts consider the entry of new investors to be relatively weak compared to previous cycles.
• The total Bitcoin supply on exchanges has fallen to 1.15 million BTC, indicating signs of accumulation as it has consistently decreased since September 7.

Almost all short-term investors in Bitcoin keep their coins at a loss; How long will this wait last? Will uncertainty continue?

The Situation Is Not Bright for STHs in Bitcoin

The situation for short-term Bitcoin investors holding their assets in the red is far from encouraging. Glassnode stated that “there is to some extent panic among this group” because almost all short-term Bitcoin holders are now in a loss.

According to Glassnode’s recent report, market sentiment for Bitcoin (BTC) has turned negative for the first time since late 2022. This has reached the deepest level in the market since the FTX crash. Analysts note that at current levels, the cost basis of crypto-spending investors has fallen below that of holders.

Analysts suggest that this behavior indicates “to some extent panic” among short-term investors, which could indicate a reluctance for STH to buy or sell cryptocurrency in the near future.

Glassnode noted that the market has seen “moderate new investor entry.” However, analysts believe that the entry of new investors is relatively weak compared to previous cycles.

The market may remain uncertain for a while

Considering macroeconomic conditions, regulatory challenges, and liquidity issues, analysts concluded that there is a high likelihood of the market remaining uncertain in the future.

According to data from the crypto market intelligence platform Santiment, Bitcoin whale transactions have recently dropped by around 10%, falling below 4,200. This decline suggests that smaller investors, rather than major players, may be triggering the recent bullish momentum.

Additionally, the total Bitcoin supply on exchanges has decreased consistently since September 7, indicating signs of accumulation as it has fallen to 1.15 million BTC.