On-chain data shows that short-term Bitcoin holders continue to capitulate as they make net losses of $0.48 billion every day.
The net profit/loss realized by the short-term Bitcoin holder is particularly red
According to data from on-chain analytics firm Glassnode, realized net profit/loss has recently been negative for Bitcoin holders in the short term. This indicator measures, as its name suggests, the net amount of profit or loss that BTC investors reap from their sales.
The version of the relevant metric here specifically tracks this for short-term holders (STH), a cohort of BTC investors that includes only buyers from the last 155 days.
Statistically, the longer an investor holds onto their coins, the less likely they are to sell them in the future. Since STHs represent the new market entrants, their resilience tends to be low and they may participate in panic selling during market volatility.
Recently, Bitcoin faced a significant decline and STH naturally reacted to it. Below is the chart shared by Glassnode that shows how the 7-day exponential moving average (EMA) of net realized profit/loss has fluctuated for this group during the recent volatility.
As the chart shows, Bitcoin STH’s realized net profit/loss dipped deep into negative territory during the price decline following the October peak, implying that realized losses far outweighed profits. In January, the indicator moved back towards the neutral mark as the market saw a rise, but the drop in prices since the end of the month brought the indicator back to a very red level.
On February 6, STH’s net profit/loss fell to a value of -$1.24 billion per day, significantly lower than the red peak seen last year. Since that low, the metric has risen a bit and today sits at -$0.48 billion per day. “Even though the intensity has calmed, the broader regime still signals a market under pressure, with participants in the basic training phase continuing to capitulate,” the analytics firm explained.
Furthermore, the Coinbase Premium Bitcoin spread has been negative recently, as CryptoQuant author IT Tech highlighted in an article
The Coinbase Premium Gap tracks the difference between the Bitcoin spot price listed on Coinbase (USD pair) and that on Binance (USDT pair). From the chart, it is apparent that the metric has held at red values since mid-December, indicating that Coinbase users are exerting higher selling pressure than Binance traders.
Coinbase is primarily used by US-based investors, particularly large institutional entities, so this trend may be a sign that there is not much demand for BTC among them at present.
BTC Price
Bitcoin has fallen even further, with its price now trading around $64,000.
