According to a current CryptoQuant Quicktake post, short-term Bitcoin (BTC) investors are deciding to refund their digital holdings, experiencing potential losses. The CryptoQuant contributor on-chain mentioned that short-term BTC investors have recorded notably lower realized losses compared to their potential losses.
Short-Term Bitcoin Holders Awaiting A Price Rally?
In the Cryptocurrency Market, the first quarter of 2025 has been noted as a high-price volatility quarter, including Bitcoin. BTC has declined from around $97,000 on January 1 to around $83,000 at the time of writing, showing a drop of more than 15%.
During this price downturn, short-term Bitcoin (BTC) investors continue to hold their investments instead of liquidation at a loss. According to the reports CryptoQuant contributor Unchained analyzed the Short-Term investor Net Realized PNL to Exchanges, drawing focus on change in trade activity.
According to the analyst, the most active sellers in the previous days are those who have owned their coins for one to three months (BTC Investors), even at the price of facing losses. This is rare, as short-term holders holding Bitcoin (BTC) for less than a week are generally the most responsive sellers.
According to the reports, the current data clearly shows a notable Downturn in selling pressure to Cryptocurrency exchanges. This advises that BTC investors who bought their BTC coins in the last six months are opting to hold their investments instead of panic selling.
This change in selling behaviour among short-term investors could have many effects. A downturn in selling pressure may show a change in holder opinion, with holders capable of enduring short-term losses in expectation of long-term profits.
While the Analyst warned that this data does not decide future price movements, it does give valuable insights into market psychology.
The Analysis States
Are short-term investors finally investing in the line? If so, this could decrease downward volatility and set the stage for balancing, or even a reversal.
According to the reports, unchained concluded that 28% of BTC’s circulating supply is currently controlled by short-term investors. If an important part of these investments transitions to long-term investors, it could pave the way for Bitcoin’s price to surge under $150,000.
Is BTC About To Stage A Comeback?
On the other hand, short-term BTC selling pressure declined, and other exchange metrics suggest that the world’s largest cryptocurrency by market capitalisation might see a price jump soon.
According to the reports, Arthur Hayes, the crypto entrepreneur and market commentator, has claimed that BTC probably hit this market cycle’s base during its drop to $77,000 on March 10. But, Hayes mentioned that the stock market will still face further downturns.
Where Bitcoin has been in a decline for the previous few months, gold has grown to multiple new all-time highs (ATHs) due to ongoing global macroeconomic instability. According to the reports at the reporting time, BTC traded at $84,953, up 2.2% in the previous 24 hours.
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Disclaimer: We at Bitcoinik.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice, and viewers should consult their financial advisors before investing.
