Bitcoin’s current struggles may not be over yet, as short-term holders continue to feel the pressure. The cryptocurrency has failed to make a significant recovery after a recent price drop, leading investors to wonder if further declines are on the horizon. Short-term holders, who typically buy and sell Bitcoin within a few weeks, have been hit the hardest as the price remains below their realized price.
The recent dip in Bitcoin’s price has left many short-term holders in a tough spot. Just a few weeks ago, Bitcoin had briefly surpassed $71,000, sparking optimism among holders for a new uptrend. However, the price has since dropped steadily, reaching a 30-day low of $63,622. Additionally, miners have flooded the market with more Bitcoins in recent days, further contributing to the price decrease.
Data shared by crypto analyst Ali Martinez on social media platform X reveals that short-term holders are feeling the pressure of Bitcoin trading below their realized price of $66,200. This means that their cost basis, or the average price at which they acquired their Bitcoin holdings, is higher than the current market value, resulting in unrealized losses.
Short-term holders now face a tough decision: whether to sell and cut their losses or hold on to their investments. Their tendency to sell more frequently than long-term holders could potentially lead to further price declines in the short term. Long-term holders, on the other hand, are more likely to view the current dip as temporary and hold on to their assets.
Bitcoin is currently trading at $64,381, with bulls needing to put in a significant effort to prevent further declines. According to a weekly report from blockchain intelligence firm CryptoQuant, Bitcoin faces the risk of falling to $60,000. On-chain data also indicates that miners have been selling their holdings at a rapid pace since the beginning of June.
Overall, the future of Bitcoin’s price remains uncertain, with short-term holders feeling the heat as the cryptocurrency continues to trade below their realized price. Long-term holders may be more optimistic about the situation, but the market dynamics suggest that further price declines could be on the horizon. It will be interesting to see how investors navigate these challenging times in the crypto market.
