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These traders have losses of approximately 22%.
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“Times are difficult for these investors,” says the analyst.
Investors who have purchased bitcoin (BTC) in the last 155 days face their highest level of losses in this market cycle. Selling pressure among these short-term holders (STH) has increased significantly. This, while the price of the digital currency deepens its decline.
The realized price of STH—a metric that reflects the average cost at which this group of investors acquired their coins—is currently around $108,500.
With the recent decline of the market and bitcoin price to the $80,000 region, These addresses are assuming losses close to 22%a level that had not been observed throughout the current bullish cycle.
The graph below shows how, over the last year, bitcoin STH capitulation episodes intensify in areas where the price of the asset falls below its realized price.
Bitcoin market crash
The sharpest peaks in STH realized losses have coincided with deep declines in market valuelike the one recorded in recent weeks.
Indeed, bitcoin has experienced a sustained downward trend since October, which has been exacerbated since November began. This has reinforced pressure on short-term holders.
According to CryptoQuant community analyst known as “Darkfost,” “times are tough for these short-term investors.”
«And it is precisely at times like these when it can be interesting to take positions as long as the long-term trend remains bullish,» he asserted.
The bearish behavior of short-term bitcoin holders aligns with previous analyzes reported by NoticiasVE. These have highlighted the exit of fearful retail participants in recent weeks. Also, signals associated with a longer bearish environment for the market.