Recent market changes in Bitcoin have heavily impacted short-term investors, leading to significant losses due to panic selling.
Panic Selling by Speculators
Speculators holding Bitcoin for one to three months have been hit hard by a significant drop in the asset's value. Many have capitulated, selling their assets at a loss.
Reduction in Holder Capital
CryptoQuant analysts found that this investor segment is $100 million underwater, as many sold their tokens cheaply. The market cap of their holdings has dropped below their realized capitalization.
Risk of Bitcoin Price Decline
February presented a new challenge for Bitcoin buyers. Over the month, the currency's rate fell by 30% from the high reached in January. Analysts warn of a possible structural shift that could indicate a longer bearish phase.
Analysts recommend investors exercise caution as the market may remain volatile, exhibiting persistent bearish trends and potential further price declines.
