According to a recent Glassnode report, short-term Bitcoin (BTC) $54,380.21 investors are becoming more stressed as market pressures mount. The report, led by researchers Ukuriaoc and Cryptovizart, says that short-term investors are facing rising unrealized losses, which could lead to selling pressure in the future.
Short-Term Investors Suffer More Losses
According to Glassnode’s on-chain analysis, short-term investors in the Bitcoin market are experiencing significant financial difficulties. While the overall market losses remain at historically low levels, this particular group is experiencing significant losses, especially due to the increasing pressure in the last three months. The report states that short-term investors’ unrealized losses have been steadily increasing, and the impact on the market is not yet a full-blown bear market, reminiscent of the volatile period in 2019. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
The General Situation of the Market is Stable
Glassnode’s report highlights that the market is generally resilient, with unrealized profits outpacing losses by six times across all investors. However, short-term investors who bought Bitcoin in the last six months are currently the most vulnerable group. Their average cost floor is between $59,000 and $65,000, well above the current Bitcoin price.
Spot Price and Selling Pressure
The report notes that selling pressure is likely to continue until the Bitcoin spot price rises above these investors’ cost floor. Glassnode’s on-chain analysis states:
“Overall, weakness is expected in the market until the spot price recovers the $62.4k cost floor for short-term investors.”
This means that short-term investors, especially those who bought Bitcoin in the last six months, will be under more pressure during periods of market weakness.
Despite all these difficulties, however, Glassnode’s analysis shows that the profit and loss transactions are still minimal. A market indicator known as the Sell Risk Ratio shows that most of the traded coins are close to their original purchase prices. This indicator usually appears before increased volatility and indicates that the market is seeking balance. Therefore, if market conditions worsen, short-term investors are expected to be the main source of selling pressure.
Glassnode’s report predicts that future market volatility could be shaped by short-term investors, who may sell more, especially if the spot price fails to rise above cost floors.
According to Glassnode’s report, the difficulties faced by short-term Bitcoin investors do not significantly affect the overall market picture, but they are a group that should be watched carefully in terms of selling pressure. In this period when the difference between unrealized profits and losses is largely balanced, short-term investors are particularly sensitive to price fluctuations.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
