On-chain data indicates that Bitcoin’s short-term holders are still capitulating, realizing net losses of $480 million daily. According to analytics firm Glassnode, the Net Realized Profit/Loss for these holders has recently been negative. This metric tracks the net profit or loss investors lock in when they sell, specifically for short-term holders (STHs)—those who bought within the last 155 days.
Short-term holders, typically new market entrants, tend to have lower resilience and are more likely to engage in panic selling during volatility. With Bitcoin experiencing a significant decline, STHs have reacted accordingly. A chart from Glassnode shows the 7-day exponential moving average of their Net Realized Profit/Loss during recent market swings.
Following the peak in October, the metric plunged deeply into negative territory as realized losses far exceeded profits. It briefly recovered toward neutral in January as prices rose, but the downturn since late January has pushed it back into sharply negative levels. On February 6, STH Net Realized Profit/Loss hit -$1.24 billion per day, surpassing last year’s lows. Although it has since improved slightly, it remains at -$480 million daily.
Glassnode noted, “While the intensity has cooled, the broader regime still signals a market under pressure, with participants in the base formation phase continuing to capitulate.”
In other news, the Bitcoin Coinbase Premium Gap has recently turned negative, as observed by CryptoQuant analyst IT Tech. This metric compares Bitcoin’s spot price on Coinbase (USD pair) with that on Binance (USDT pair). It has stayed negative since mid-December, suggesting that Coinbase users are exerting greater selling pressure than traders on Binance.
Given that Coinbase is popular among U.S. investors, including large institutions, this trend may indicate weak demand for Bitcoin in that market currently.
Meanwhile, Bitcoin’s price continues to decline, now trading around $64,000.
Frequently Asked Questions
Of course Here is a list of FAQs about Bitcoins recent decline and the reported losses for shortterm investors structured from beginner to more advanced questions
Beginner Definition Questions
1 What does Bitcoins decline continues actually mean
It means the price of Bitcoin has been dropping significantly over a recent period Just like a stock its value is determined by what people are willing to buy and sell it for and recently selling pressure has been higher than buying demand
2 Who are shortterm investors and why are they losing money
Shortterm investors are people who buy Bitcoin hoping to sell it quickly for a profit often within days weeks or months They are losing money because they bought Bitcoin at a higher price and now the price has fallen below what they paid If they sell now they lock in that loss
3 What does daily losses of 480 million refer to
This is an estimate of the total realized losses taken by all Bitcoin investors across major exchanges on a single day Its calculated by tracking when coins that were bought at a higher price are later sold at a lower market price The 480 million figure highlights the intense selling pressure and pain being felt by traders
Causes Context Questions
4 Why is the price of Bitcoin going down right now
Theres rarely one single reason but common factors include broader economic uncertainty large investors selling negative market sentiment profittaking after a previous rally or concerns about specific events
5 Is this a normal thing for Bitcoin
Yes extreme volatilitysharp price swings both up and downis historically very normal for Bitcoin and cryptocurrencies It has experienced many major declines of 50 or more throughout its history followed by periods of growth
6 Does this mean Bitcoin is failing or a bad investment
Not necessarily Price declines are a part of its volatile nature Many longterm believers see these dips as potential buying opportunities However it underscores that Bitcoin is a highrisk asset and not a guaranteed investment Its longterm viability is still debated
Practical Personal Impact Questions