Bitcoin Short-Term Holders ‘Panic’ Amid Nearly 100% Unrealized Loss
Bitcoin shortterm holders unrealized loss
Bitcoin short-term holders (STHs) are in “panic” mode, as nearly all of them are in the red, according to research from Glassnode.
In its latest weekly newsletter, “The Week On-Chain,” the analytics firm revealed 97.5% unrealized losses among Bitcoin’s STHs.
STHs are defined as entities that have been holding Bitcoin for less than 155 days. This group of investors is typically more price-sensitive than long-term holders (LTHs), who have been holding Bitcoin for more than 155 days.
What is causing the panic among STHs?
There are a few factors that could be contributing to the panic among STHs.
Macroeconomic uncertainty: The global economy is facing a number of challenges, including the war in Ukraine, high energy prices, and rising inflation. This uncertainty is weighing on investor sentiment and making investors less likely to invest in risky assets like crypto market cap .
Reduced demand from institutional investors: Institutional investors, such as hedge funds and pension funds, were major buyers of Bitcoin in 2021. However, demand from institutional investors has slowed down in recent months. This is likely due to a number of factors, including the global economic uncertainty and the increased regulatory scrutiny of cryptocurrencies.
Technical resistance: Bitcoin has been facing technical resistance at the $28,500 level. This means that there are a large number of sellers who are willing to sell Bitcoin at this level, which is making it difficult for Bitcoin to break through this resistance level.
What does this mean for the Bitcoin market?
The panic among STHs is a bearish sign for the Bitcoin market in the short term. It suggests that there is a lot of selling pressure on Bitcoin, which could lead to further price declines.
However, it is important to note that LTHs are still holding strong. In fact, the percentage of Bitcoin held by LTHs is at an all-time high. This suggests that LTHs are still confident in the long-term prospects of Bitcoin.
What should Bitcoin investors do now?
If you are a Bitcoin investor, the most important thing is to stay calm and avoid making any impulsive decisions. Bitcoin is a volatile asset, and its price is subject to sudden swings. However, Bitcoin has a history of recovering from bear markets.
If you are investing in Bitcoin for the long term, you should focus on building your wealth over time through disciplined investing. You should also diversify your portfolio by investing in a variety of assets.
If you are concerned about the short-term price of Bitcoin, you may want to consider selling some of your Bitcoin and taking profits. However, it is important to remember that Bitcoin is a volatile asset, and its price could quickly recover.
Here are some additional tips for Bitcoin investors:
Do your own research: Before investing in Bitcoin, it is important to do your own research and understand the risks involved.
Invest what you can afford to lose: Bitcoin is a volatile asset, and there is always the risk of losing money. Therefore, it is important to only invest what you can afford to lose.
Have a long-term investment horizon: Bitcoin is a long-term investment. It is important to be patient and not expect to get rich quick.
Diversify your portfolio: It is important to diversify your portfolio by investing in a variety of assets. This will help to reduce your risk and maximize your returns.
The panic among live cryptocurrency prices STHs is a bearish sign for the Bitcoin market in the short term. However, it is important to note that LTHs are still holding strong. This suggests that LTHs are still confident in the long-term prospects of Bitcoin.
If you are a Bitcoin investor, the most important thing is to stay calm and avoid making any impulsive decisions. You should also focus on building your wealth over time through disciplined investing and diversify your portfolio by investing in a variety of assets.