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Bitcoin Price Drops Below $66,200 as Short-Term Holders Realize

by xyonent
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According to recent on-chain data: Bitcoin’s current predicament It may not be over yet as short-term holders continue to take the hit. Bitcoin has failed to recover significantly after the price drop over the past week, leaving many investors wondering whether they should expect further declines in the coming weeks. Data shows that short-term holders are the most troubled, especially as Bitcoin continues to trade below its realized value.

Bitcoin Holders Continue to Trade Despite Short-Term Pain

Short-term holders are known to typically buy Bitcoin for only a few weeks at a time before selling to take a profit. Interestingly, earlier this month, Bitcoin rose above $71,000 again, which many holders saw as the start of another long-term uptrend. This brief break above $71,000 saw many short-term holders jumping on the bandwagon to ride the upward trend.

But things haven’t been rosy since then, with Bitcoin dropping to a 30-day low of $63,622 in the past 24 hours, according to data from CoinMarketCap. Miners are succumbing, Flooded the market Bitcoin has increased over the past few days, further contributing to the price decline.

According to on-chain data shared by crypto analyst Ali Martinez on social media platform X, short-term holders are starting to feel the pressure. Interestingly, this pressure comes from Bitcoin trading below its realized price of $66,200 for an extended period of time. Their cost basis, or “realized price,” i.e. the average price at which they acquired their Bitcoin holdings, is now above the current market value. In other words, they are carrying unrealized losses.

What does this mean for prices?

Short-term holders are faced with a tough choice at this critical juncture: should they cut their losses and sell, or Be patient and HODLIt is impossible to predict how individual investors will act, but given their position as short-term holders, they are likely to sell. This is because Further price declinesAt least in the short term. Meanwhile, long-term holders are As a temporary phenomenon And retain assets.

BTC is currently trading at $64,381. Chart: Trading View

At the time of writing, Bitcoin is trading at $64,381 and it will take a lot of effort from bulls to prevent it from falling any further. According to the weekly report: report According to blockchain information company CryptoQuant, Bitcoin is currently Face the risk of falling Up to $60,000.

As mentioned earlier, on-chain data indicates that Bitcoin miners are selling off their holdings. IntoTheBlock Data Since early June, miners have sold more than 30,000 BTC, worth $2 billion, at the fastest pace in over a year.

Featured image from Shutterstock, chart from TradingView

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