The past week has been challenging for short-term Bitcoin holders, who have begun actively selling their assets as prices decline in the market. Meanwhile, long-term holders continue to secure profits.
Short-Term Holders Increase Selling
In the past week, over 20,000 BTC moved to exchanges at a loss, while Bitcoin’s price fell below $113,000. The volume of BTC transferred to exchanges at a loss rose from around 1,700 BTC on Sunday to 23,520 BTC by Tuesday, coinciding with a price drop of 3.5% from $118,600 to $114,400. CryptoQuant data also indicates that short-term holders' Spent Output Profit Ratio (SOPR) multiples fell below 1, signaling renewed pressure on short-term sellers.
Long-Term Holders Secure Profits
At the same time, long-term holders are realizing gains. Analyst JA Maartun pointed out that the LTH SOPR spiked to 273, suggesting that long-term holders realized gains about 273 times their cost basis. This indicates a split in the market: short-term holders are selling at a loss, while long-term holders are witnessing profits.
Impact of Macro Economic Factors
Investors are also focused on macroeconomic factors, such as the Federal Reserve’s FOMC minutes and Jerome Powell’s remarks at the Jackson Hole event. Any deviation from expectations could impact Bitcoin and other risk assets. Currently, the market displays a clear divide: short-term holders are realizing losses, while long-term holders are securing profits. The future of Bitcoin relies on its ability to hold support levels and potentially retest $120,000.
The situation in the Bitcoin market remains tense. Short-term holders are realizing losses while long-term holders continue to secure profits. The future of Bitcoin depends on maintaining support levels and subsequent market movements.
