BTC Short-Term Holders Panic Amid Unrealized Loss
According to studies, Bitcoin traders are in “panic” mode because almost all of them are losing money.
The newest issue of analytics company Glassnode’s weekly newsletter, “The Week On-Chain,” found 97.5% unrealized losses among Bitcoin’s short-term holders, or STHs.
Investors’ resolve has been put to the test by the recent BTC price movement, but none more so than those who purchased BTC in the previous three months.
The aggregate cost basis of STHs, which correspond to entities hoarding coins for 155 days or fewer, has failed as a market support.
As of September 17, according to Glassnode, the cost base for those who aren’t using Bitcoin is $28,000, or around 5% more than the current market price.
The company divided the STH cohort into holders and spenders for the sake of its research, and it found “a relationship between abrupt changes in implied unrealized profitability and the shift in spending by STHs in realised profitability.”
A trend confidence indicator that divides by the price of Bitcoin after separating spender cost basis from holding cost basis was unveiled by experts at Glassnode.
(With inputs from Shikha Singh)
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