Bitcoin panic selling costs new investors $100M in 6 weeks — Research

Key Points

  • Bitcoin speculators lost over $100 million due to panic selling in six weeks.
  • Short-term holders (STHs) who bought Bitcoin between one to three months ago were hit hardest.
  • The market cap of these STHs is now lower than their realized cap, indicating they are selling at a loss.
  • The behavior of these investors is contributing to increased selling pressure and potential further price drops.

Summary

Recent research from CryptoQuant highlights the financial distress among Bitcoin speculators, particularly those who have held the cryptocurrency for one to three months. These short-term holders (STHs) have experienced a significant loss, with over $100 million in realized losses due to panic selling over the past six weeks. The data indicates that these investors are now selling their Bitcoin at prices lower than their purchase cost, leading to a market cap lower than their realized cap. This selling behavior not only reflects the current bearish sentiment but also adds to the downward pressure on Bitcoin's price. The analysis suggests that while bull market corrections are typically short-lived, the current indicators might signal a more prolonged bearish phase. This situation underscores the volatility and risk associated with cryptocurrency investments, particularly for those who do not hold through market fluctuations.

cointelegraph
March 14, 2025
Crypto
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