by Rubab Fatima
According to on-chain analytics firm CryptoQuant last week saw Bitcoin speculators suffer over $100 million in losses from rapid selling decisions. By examining the research, it shows significant losses in the lives of the short term Bitcoin owners (STHs), mostly those who purchased the BTC in the last one to three months.
As Bitcoin’s price has been driven lower from recent highs, the latest analysis demonstrates Bitcoin’s severe impact on the finances of a lot of those that have bought in recently. CryptoQuant’s estimate for the size of this specific cohort of short term holders is now approximately $100 million underwater (having been bought in at higher prices and being sold at a loss).
Bitcoin Holders Face Sharp Decline in Value
The value of Bitcoin owned by this cohort has declined sharply ‘this is a significant reduction in value of Bitcoin held by this lot, many of whom bought at higher prices and are exiting under the impression that they have now done it,’ added CryptoQuant contributor Onchained in a March 13 Quicktake blog post.
Market in an Oversold Zone After a Strong Correction
“Even without an additional sharp decline, the market has already been sufficiently lightened, making it a favorable zone for a potential upward move without the need for further significant drops.” – By @DanCoinInvestor pic.twitter.com/mjLOQWlj4U
— CryptoQuant.com (@cryptoquant_com) March 13, 2025
The report then examined the market cap and realized cap of these Bitcoin holders, and showed how to compare the current proceeds from their holdings to the prices at which they last moved their BTC on-chain. This implies they are realizing losses that exceed market capitalization, which means market capitalization has gone below realized capitalization.
Increased selling pressure has been a result of this trend and could further affect Bitcoin’s price in the short term. The accompanying report showed a sharp decline in realized cap in a CryptoQuant chart, one of the steepest negative week shifts in the recent months.
Additionally, these investors’ Net Unrealized Profit/Loss (NUPL) score has gone down to -0.19 which means more BTC is currently being held at a loss than at any other time in the past year.
Bitcoin’s 30% Drop Puts Pressure on New Buyers
This comes after Bitcoin’s dramatic 30 percent drop from its all time high in mid January, making life all the more tough for new buyers. During bull runs, such market corrections often lead to panic selling which many short-term investors manage to panic sell ahead of time with losses.
In the midst of the turbulence, big volume holders have become unmoved by short term price movement. Instead, at the $80,000 price level, these entities are maximizing the bitcoin market dip to gain more Bitcoin.
Glassnode, an onchain analytics firm, earlier this week also chimed in with a post in which it notes that there are Bitcoin investors that bought at the all time high $7,900 in January that are now panic selling as Bitcoin price falls. However, the firm said further selling pressure could see Bitcoin’s price drop to $70,000.
If the selling pressure continues, Glassnode’s analysis said, $70,000 could become a bottom if short-term holders are ‘deeply underwater’ at the $71,300 to $91,900 price levels. The firm also said that the probability of building a temporary floor in this zone is real, at least in the short term.
However, given the volatility of Bitcoin’s price, analysts state that even lower prices may yet squeeze out more weak hands while institutional investors and long term holders buy, perhaps planning for the future price recovery.
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