Declining profits for short-term Bitcoin holders may positively affect its price due to reduced selling incentives. Simultaneously, increasing stablecoin inflows into the crypto market could contribute to Bitcoin's rally.
Current State of the Bitcoin Market
After reaching nearly $100,000 on February 7th, Bitcoin is struggling to maintain this level and is currently traded at $95,811.80, a 2.65% decrease over the last 24 hours. However, with profit margins remaining low for short-term holders, there is less motivation to sell, potentially leading to a rise in Bitcoin’s price.
Profit Declines and Supply Constraint
Glassnode’s Bitcoin Short-Term Holders Profit/Loss Ratio is at 1.08, suggesting a slight profit for holders. This is below its 90-day average, indicating a market shift towards a neutral position. The MVRV ratio for short-term holders is also below its 90-day average, reflecting overall market conditions which reduce selling pressure from this group, potentially constraining Bitcoin supply.
Increasing Capital in the Crypto Market
The significant increase in stablecoin supply suggests rising capital inflows into the crypto market. In 2025 alone, stablecoin supply rose by approximately $16.97 billion, often preceding higher crypto purchases. Bitcoin's adoption as a strategic reserve asset by governments and institutional investors is likely to benefit from this trend.
The decline in short-term holder profits and increasing capital inflow due to stablecoins set the stage for continued Bitcoin price growth. Constrained supply amid rising demand could play a key role in future market movements.
