On-chain data shows that Bitcoin’s short-term holders continue to capitulate as they realize a net loss of $0.48 billion every day.
The short-term Bitcoin holder’s net realized gain/loss is strikingly red
This is evident from data from an analysis company in the chain Glass junctionnet realized gain/loss has been negative for short-term holders of Bitcoin lately. This indicator, as the name suggests, measures the net amount of profit or loss that BTC investors reap from their sales.
The version of the metric of interest here tracks this specifically for short-term holders (STHs), a BTC investor cohort that only includes 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. Because the STHs represent the new entrants to the market, their resilience is often low and they can participate in panic selling during market volatility.
Recently, Bitcoin has suffered a major pullback and the STHs have naturally responded. Below is the chart shared by Glassnode showing how the 7-day exponential moving average (EMA) of net realized gain/loss for this group has fluctuated during the recent volatility.
As visible in the chart, the Bitcoin STH Net Realized Profit/Loss saw a deep dive into negative territory during the price drop that followed the October high, implying that realized losses significantly exceeded gains. In January, the measure recovered towards the neutral point as the market saw a rise, but the price decline since the end of the month has again brought the indicator to a very red level.
On February 6, STH’s net realized profit/loss fell to -$1.24 billion per day, significantly lower than last year’s red peak. Since this low, the value has risen slightly and today stands at -$0.48 billion per day. “Although the intensity has decreased, the broader regime still signals a market under pressure, with participants in the grassroots formation phase continuing to capitulate,” the analytics firm explains.
In other news, the Bitcoin Coinbase Premium Gap has been negative lately, as highlighted by CryptoQuant author IT Tech in an after.
The Coinbase Premium Gap tracks the difference between the Bitcoin spot price listed on Coinbase (USD pair) and that on Binance (USDT pair). The chart shows that the metric has remained in the red since mid-December, indicating that Coinbase users have exerted more selling pressure than Binance traders.
Coinbase is mainly used by US-based investors, especially the large institutional entities, so this trend could be a sign that there is not much demand for BTC among them at the moment.
BTC price
Bitcoin has fallen deeper as the price now trades around $64,000.