A new report claims that 90% of short-term holders of Bitcoin (BTC) are underwater on their investment after last week’s selloff.
Data from analytics firm Onchain has found that investors who planned to buy and then quickly sell Bitcoin are now likely in the red after the largest cryptocurrency by market capitalization fell more than 10% to as low as $25,000 U.S. last week.
With the recent selloff, 88.3% of the supply controlled by short-term holders (STHs), or investors who hold Bitcoin for 155 days or less, has fallen into unrealized losses.
Many short-term holders who are facing losses are now selling their Bitcoin at a loss, notes Onchain in its report, a situation that could further pressure the cryptocurrency’s price.
Sentiment towards Bitcoin and other cryptocurrencies has soured in recent weeks as the stock market stalls, bond yields rise, and it looks less likely that U.S. regulators will approve exchange-traded funds (ETFs) that are focused on crypto.
Bitcoin is currently trading at just under $26,000 U.S. Despite the recent selloff, the price of Bitcoin has risen 56% so far in 2023.
