Over 80% of Short-Term Bitcoin Holders Underwater — What This Means For BTC

Bitcoin (BTC) is currently in red regarding price performance, dragging the rest of the crypto market along with it. Amid the continuous bearish price action, the latest data has revealed that Bitcoin short-term holders now face losses compared to their initial purchase prices.

Onchain data expert James Check highlighted this in a recent post on X, disclosing that over 80% of Bitcoin’s short-term holders, those holding their BTC for less than 155 days, have bought their tokens at prices higher than the current market rate.

Underwater Investors, Implication For Bitcoin

This situation of the majority of short-term holders being in the red (at a loss), as pointed out by Check, is quite similar to the scenario that took place in “2018, 2019, and mid-2021, which signaled many investors were at risk of panicking and precipitating a bearish trend.”

Right now, over 80% of #Bitcoin Short-Term Holders are underwater, meaning their coin was acquired at a price above the current spot price.

This is similar to 2018, 2019, and mid-2021 which signalled many investors were at risk of panicking, and precipitating a bearish trend. pic.twitter.com/8jM7PBqh5z

— _Checkmate