YEREVAN (CoinChapter.com) — The Bitcoin market remains stable, even as short-term traders face losses. Long-term investors and Bitcoin holders continue to hold profitable positions despite recent market dips. However, new traders are experiencing unrealized losses, contributing to the current market pressure.
Long-Term Bitcoin Investors Hold Strong as Profits Outweigh Losses
Bitcoin trades at $57,450, down 22% from its all-time high of $73,835. Data from Glassnode shows that long-term Bitcoin investors remain in a profitable position. In fact, the unrealized profit-to-loss ratio reveals that profits are six times greater than losses. In addition, this robust financial position suggests the market is holding steady, with only 20% of trading days showing a better ratio.
According to analysts, BTC investors are in a relatively favorable position compared to previous bull cycles. The recent decline hasn’t significantly affected long-term holders, as they maintain smaller unrealized losses than in past cycles.
Short-Term Bitcoin Holders Face Losses as MVRV Drops Below 1.0
On the other hand, short-term Bitcoin holders (STH) are facing a challenging market. These investors, who have held Bitcoin for less than 155 days, are currently experiencing unrealized losses. In particular, the short-term holder MVRV ratio has dropped below 1.0, indicating that most newer investors are underwater. This trend mirrors the situation from August 2023, following the FTX collapse.
According to Glassnode, all age bands within the STH group are holding losses, with the current STH cost basis around $62,400. Additionally, market observers believe that unless Bitcoin reclaims this level, further price declines may occur. Until then, there is growing concern about the pressure on short-term investors.
Bitcoin Holds Above Critical $51K Level, Trading at $58K Amid Market Fluctuations
Analysts are closely watching the $51,000 price level, which remains critical for Bitcoin’s market stability. If Bitcoin falls below this level, the market could face additional downward pressure, particularly from short-term investors. Glassnode warns that maintaining this price is essential for continued upward movement.
At the moment of writing, Bitcoin is trading at $58,049.06 with a market cap of over $1.14 trillion and a 24-hour trading volume of $36 billion. The circulating supply is 19,749,656 BTC, with a maximum supply of 21,000,000 BTC. Bitcoin’s price has seen a 1.49% decline over the past week, reflecting recent market fluctuations.
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