According to a popular on-chain analyst, more than 80% of short-term Bitcoin holders are currently losing money on their BTC positions.
The pseudonymous sleuth on the chain known as Checkmate tells From his 97,000 followers on social media platform
The analyst defines STH as entities that have held their coins for less than 155 days.
But the analyst say this time it could be different, because while a large number of short-term holders are in the red, their cost base is not far below the current value of BTC.
“Just because a coin is priced below cost doesn’t tell us how bad it is. Being below -1% is psychologically very different from being below -20%. Despite 80% of STH coins incurring losses, the size of the unrealized loss is only 4% of the market capitalization.”
The trend also appears to be limited to short-term holders.
A total of 81% of Bitcoin investors make money at the current BTC price, according to crypto analytics firm InTheBlok.
Bitcoin is trading at $60,438 at the time of writing. The highest-ranked crypto asset by market capitalization is up more than 3% in the past 24 hours.
Checkmate too estimates that the average Bitcoin mining price is currently around $57,200, indicating that miners are still making profits at current levels.
“I can only imagine that miners are confusing the current environment and are barely profitable. For HODLers, this is largely irrelevant (and expected). For miners and shareholders…hope for a rally.”
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Generated image: DALLE3