Bitcoin Short-term Investors in Loss: Highest Level After FTX Collapse

Recently, the fluctuations in Bitcoin prices have caught the attention of investors once again. The total 2.8 million Bitcoin that short-term holders (STH) are holding at a loss has reached the highest level seen since the FTX collapse in 2022. This situation in the cryptocurrency market reveals that short-term investors are under heavy pressure during a period where the overall downtrend is deepening.

According to Glassnode data, short-term investors are holding all the Bitcoin they acquired when the price was at $104,000 until now. Approximately 155 days ago, Bitcoin was priced at $104,000, and the current attitudes of investors indicate a quite negative picture compared to this price level. On the other hand, long-term holders (LTH) have been gradually selling throughout the year. The LTH supply, which was 14,755,530 Bitcoin in July, has dropped to 14,302,998 Bitcoin according to the latest data. During this period, only 452,532 Bitcoin has been converted to liquidity.

Nicholas Gregory, a leading figure in the sector, emphasizes that these sales were made due to liquidity and lifestyle preferences without a broad market concern. An interesting divergence is that the US spot Bitcoin ETFs (Exchange-Traded Funds) are still showing a strong stance. From a peak of 1.38 million Bitcoin held in October, it has only decreased by 3.6% to currently 1.33 million Bitcoin. This occurred during a time when Bitcoin prices had pulled back by 25%. ETF data presents a healthier outlook by minimizing the distortions created by price volatility.

The fact that a large portion of short-term investors is at a loss can typically create an environment that triggers panic selling. However, the stable demand from US ETFs indicates that there is a strong and long-term base in the market. This situation could mean a structurally positive signal for Bitcoin investors amidst price volatility.