Analytical firm Glassnode revealed that short-term Bitcoin (BTC) holders are at a loss as the flagship crypto asset is trading below a significant psychological level.
Glassnode reports that almost all short-term investors (STHs), i.e. those who hold Bitcoin for less than 155 days, are at a loss.
“Currently, almost 58% of the circulating supply is in profit, while in the last three market dips this metric has dropped to <50%. STH-Procurement profit is only 2.2%, so short-term holders are almost completely at a loss.”
The analytics firm added the following to add a new dimension to this observation:
“Here, the increasing dominance of long-term holders (or the decreasing share of short-term holders) in the final stages of a bear market is striking.”
The crypto analysis firm said that long-term investors (LTH) hold the lion’s share of profits in the bear market. According to Glassnode, short-term holders of Bitcoin currently hold less than 10% of the profits in the market, as in the previous two bear markets. Long-term holders, on the other hand, hold more than 90% of the profits in the market as Bitcoin hovers below $30,000.
“In the last two extended bear markets, the 14 DMA of this metric has moved above the 90% threshold. This means that under the psychological pressure of downward price action, short-term investors hold less than 10% of the profits in the market.
With Bitcoin falling below $30,000 in the last drop, this metric has crossed the 90% threshold. Above this level, STHs essentially reached a near-peak pain threshold, with virtually no unrealized profit (a theoretical profit that exists on paper, resulting from an investment that has not yet been sold for cash) while LTHs dominate the remaining profitable supply.”
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.