Bitcoin Short-Term Investors are in the Red: Highest Level Since the FTX Collapse

In recent days, the fluctuations in Bitcoin prices have once again caught the attention of investors. The total of 2.8 million Bitcoins held by short-term holders (STH) at a loss has reached the highest level since the FTX collapse in 2022. This situation in the cryptocurrency market illustrates that short-term investors are under significant pressure during a period where the overall decline trend is deepening.

According to Glassnode data, short-term investors hold all the Bitcoins they acquired when Bitcoin was trading at $104,000 until now above the current price. Approximately 155 days ago, when Bitcoin's price was $104,000, the current attitudes of investors indicate a significantly negative picture compared to this price level. The long-term holder group (LTH), on the other hand, has been gradually selling throughout the year. The LTH supply, which was 14,755,530 Bitcoins in July, has now decreased to 14,302,998 Bitcoins according to the latest data. During this period, only 452,532 Bitcoins have been converted to liquidity.

Notable figures in the sector, such as Nicholas Gregory, emphasize that these sales have been carried out due to liquidity and lifestyle preferences, without widespread market concerns. An interesting divergence is the continued strong stance of US spot Bitcoin ETFs (Exchange-Traded Fund). From the peak of 1.38 million Bitcoins held in October, it has only decreased by 3.6% to 1.33 million Bitcoins at present. This occurred during a period when Bitcoin prices have pulled back by 25%. ETF data provides a healthier view by minimizing the distortions created by price volatility.

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