Bitcoin Holders Face Losses as Price Drops Below Cost
The Most Important Points at a Glance
Bitcoin short-term holders (STH) are experiencing losses as the price has fallen below their average purchase prices. Significant outflows from exchange-traded funds (ETFs) have intensified the recent decline. Market sentiment remains cautious, and further losses are possible.
Bitcoin Under Pressure: What’s Behind It?
Bitcoin has fallen below the cost basis of short-term holders. This group includes investors who hold BTC for less than 155 days. According to current data, their average purchase price is around $90,500 USD. The recent price decline means that many of these investors are seeing losses.
A key factor in the price drop is the strong outflows from Bitcoin ETFs. Notably, on February 25, $1.14 billion USD was withdrawn from ETFs, while on February 28, inflows amounted to only $94.3 million USD.
Market Sentiment Remains Tense
The Bitcoin Fear and Greed Index is currently at 26 points, indicating a continued fearful market sentiment. Although the value has slightly improved compared to the previous day (20 points), uncertainty remains high. Over the past nine days, Bitcoin’s price has fallen by 13.8%.
How Could Bitcoin’s Price Develop?
Analyses suggest that Bitcoin could be in a phase of consolidation and accumulation. However, this requires stable demand and an improvement in macroeconomic conditions.
Looking at previous cycles: After the Bitcoin halving in 2020, the price only fell below the STH cost basis in May 2021. It then remained below this level until July before recovering in August. A similar pattern could repeat.
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In the short term, Bitcoin could continue to decline and possibly stabilize in the range of $65,000 to $70,000 USD before a recovery sets in.
Our Assessment
The current market situation remains challenging. Short-term investors should prepare for potential further losses. However, in the long run, a phase of accumulation could emerge, favoring a recovery. The key factors will be whether demand stabilizes and macroeconomic conditions improve.
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | $82,604.00 |
| 24h % | 1.24 % |
| 7d % | -7.39 % |
| 30d % | -15.11 % |
| 60d % | -12.51 % |
| 1y % | 17.05 % |
| Market Cap | $1,636,230,054,544.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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