the Bitcoin (BTC) price drops sharplyBitcoin, the world’s largest cryptocurrency, has been causing huge losses for its holders in the short term. Recent reports have revealed that many Bitcoin holders are now in a bad situation, suffering losses due to Cryptocurrency price collapse And the continuous fluctuations in the market.
Short-term shareholders under pressure
On September 4, Glassnode, an on-chain market intelligence platform, released a detailed report a report Regarding the financial pressures that Bitcoin holders are currently experiencing in the short term due to High market volatility And a decrease in the price of BTC.
currently, Short-term Bitcoin holders are holding onto a huge loss, making it Potential risk. Looking at the broader market, unrealized losses, which are only 2.9% of Bitcoin’s total market cap, remain historically low. This suggests that the overall investor is still relatively profitable in the face of Market downwhere the ratio of total unrealized profit to total unrealized loss is six times greater.
however, Short term BTC holders Those who have recently bought Bitcoin are bearing the brunt of the market declines and are bearing the majority of the pressure. Their unrealized losses dominate the total and continue to grow, but this situation has not reached full bear market Conditions are similar to previous market crashes. However, the losses reflect a more turbulent period, Similar to what we saw in 2019..
These market observations are derived from short-term bondholder ratings. Market value to realized value ratio (STH MVRV). According to Glassnode, Bitcoin’s STH MVRV has collapsed below the parity value of 1.0, and is currently trading at levels similar to those of August 2023, when the market was recovering from FTX Failure.
This assessment indicates that the average new BTC investor is carrying an unrealized loss. Even Bitcoin price While Bitcoin price has crossed the $62,400 mark, Glassnode expects further weakness in the already bearish market.
At present, all age groups and segments within the group of short-term shareholders are Exposure to unrealized lossesThis indicates that there is widespread pressure among short-term Bitcoin investors in the cryptocurrency market.
Current state of the Bitcoin market
Glassnode’s report provides an in-depth analysis of Current state of the Bitcoin marketespecially assessing price movements, investor sentiment, and general market behavior. Over the past six months, Bitcoin price movement The market was flat, with many investors showing indifference or turning apathetic.
However, the market has witnessed in the past three months More downward pressureWhich led to a significant drop in the price of Bitcoin. Although compared to historical bull market systems, this drop is relatively smaller than previous bear markets.
Glassnode revealed that profits made have decreased significantly since Bitcoin All Time High Bitcoin is expected to surpass $73,000 in March 2024. This indicates that fewer bitcoins are being sold for profit while realized losses are rising as the market continues to decline.
The current risk-on-sell ratio for Bitcoin is also very low, meaning that most of the assets traded are close to breakeven. This suggests that the current market may be oversaturated in terms of profit and loss taking, suggesting that Potential for further volatility in the future.
Featured image created using Dall.E, chart from Tradingview.com
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