Bitcoin Holders Still Profitable, Whereas Short-Term Traders Face Difficult Losses

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.

Short-Term Bitcoin Holders Underwater. Source: Glassnode## 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.

BTC Unrealized Profit/Loss Ratio. Source: GlassnodeAccording 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.

Bitcoin Short-Term Holder MVRV Analysis. Source: GlassnodeAccording 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 Realized Price Breakdown for STHs. Source: Glassnode## 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.

Bitcoin Price and Market Cap Overview. Source: CoinMarketCap