Bitcoin Price Breakpoint: 99 Percent Loss

Recently, the decline in Bitcoin (BTC) prices to the $96,000 level indicates a potential critical turning point in the markets. Notably, the fact that the majority of investors who bought in the last 155 days are now at a loss creates a remarkable situation in terms of investor psychology and market dynamics.

Graphs shared by Glassnode reveal that short-term investors, specifically those who purchased Bitcoin in the last 155 days, are approaching a critical threshold. The current price level of Bitcoin shows that approximately 99% of this group is at a loss. As short-term investor behaviors have a significant impact on price trends, this situation is being closely monitored by investors.

The near-zero level of the Short-Term Holders Supply in Profit metric indicates that the amount of profitable Bitcoin held by short-term investors has dropped to a minimum. This suggests that this group may be more prone to panic selling. The pressure on Bitcoin's price emerges as another factor supporting this trend.

In this period where we have reached historically low levels, additional band data provided by Glassnode highlights that the current situation is one of the historically most stressful points. Particularly, sharp declines and significant reversals observed in previous cycles have occurred before dramatic price movements like the ones we see now. This analysis strengthens the commentary that a turning point in the market may be approaching.

The fact that nearly all short-term investors are at a loss stands out as one of the most important factors that will determine the volatility of Bitcoin's future price movements. How Bitcoin reacts from the current situation will largely depend on investor behavior and macroeconomic flows.