- Declining profitability for Bitcoin’s short-term holders indicated potential price corrections.
- BTC has risen 6.08% over the past week as buyers regained control of the market.
Since the beginning of 2025 Bitcoin [BTC] has shown strong resilience and regained the $99,000 level. During this period, BTC has risen from $92768 to $99857.
Despite the recent price increase, analysts have shared their concerns about BTC’s current market conditions. To this extent, CryptoQuant analysts have suggested a possible correction, citing declining profitability among short-term holders.
The profitability of Bitcoin’s short-term holders is declining
Analyst Crazy block noted that short-term holders of Bitcoin saw their profitability drop.
Source: CryptoQuant
The subsequent inability to recover BTC’s $108K ATH caused the profitability margin for STHs to drop significantly.
When profitability for STH falls, it indicates weakening market demand and rising bearish sentiment in the short and medium term.
Such a drop in demand indicates a greater likelihood of price correction. Short-term corrections are therefore inevitable, while Bitcoin has enormous potential for long-term growth.
Impact on BTC charts?
Although short-term holders’ profitability has declined as Bitcoin trades below $100,000, the market appears positioned for more gains in the near term.
Therefore, other market indicators suggest that bulls are trying to push prices higher and a massive market correction seems unlikely, especially in the short term.
Source: CryptoQuant
For example, Bitcoin’s Taker buy-sell ratio has soared to 1.121 in the past 48 hours. With a ratio above 1, it suggests that BTC is experiencing aggressive buying activity, with buyers outpacing sellers.
This reflects bullish sentiment as short-term upward momentum, with buyers dominating the market.
Source: CryptoQuant
Moreover, Bitcoin’s funding rate rose from 0.0084 to 0.0124 in the past day. When funding rates rise, it shows that more traders are bullish and opening long positions.
The demand for long positions reflects market confidence, with investors expecting BTC prices to rise.
Source: CryptoQuant
Finally, Bitcoin’s supply ratio on the exchange has fallen to an annual low.
With a dip in supply on the exchanges, this implies that investors are accumulating BTC by switching to private wallets, expecting prices to rise further.
Simply put, although the profitability of short-term bonds has declined, the market still appears strong, especially in the short term.
Therefore, this reduced profitability is not yet a signal of a short-term market correction as investors are still optimistic.
Read Bitcoin’s [BTC] Price forecast 2025–2026
With bullish sentiments still prevailing in the market and buyers regaining control, we could see BTC regain $100,000 and rise to $102,777.
Therefore, if the expected correction occurs, Bitcoin will fall to $95,000.