Since the market crisis caused by The US and China tariff frenzyBitcoin is still battling volatility as its price again misses the $110,000 price target after a brief bullish move on Sunday. As the BTC price experiences bearish performance, investors, especially short-term BTC holders, are experiencing notable losses on their positions.
Realized Losses Rise for Short-Term Bitcoin Investors
Amid the wave of market volatility and Bitcoin price pullback, key on-chain data shows that short-term BTC investors are taking a hit. Specifically, this negative development is being revealed by Bitcoin’s Realized Profit and Loss (RPL) ratio for short-term holders.
In a post on social media platform shared that the realized profit/loss ratio of short-term BTC holders has suffered a sharp drop. This negative shift points to growing pain among these investors and around the world. the BTC market.
It also suggests that the majority of investors who bought bitcoin in the previous weeks or months they are now selling it at a loss. While this is a sign of short-term capitulation, such moves typically reflect weak hands exiting the market, which will likely precede significant areas of accumulation and a long-term rally.
According to the market expert, Short-term holders are struggling with losses.. During press time, short-term holders noticed the price hovering around the $113,000 mark.
Currently, Bitcoin’s weaker hands are being forced to capitulate due to its stagnation. This is evidenced by the drop in STH’s realized P/L ratio to -1.4, a level comparable to the April 2025 correction. It is important to note that when short-term holders are under pressureOpportunities tend to present themselves and eventually you hit rock bottom.
Darkfost highlighted that the trend is precisely what has been observed throughout this cycle. Furthermore, the expert noted that the trend is the final phase of the ongoing correction. This narrative will hold as long as there are brief, sporadic spikes in volatility during the generally uptrend.
Long-term BTC holders are exiting the market
After navigating the change in the long-term holder’s net supply position in the 30-day period, Darkfost revealed that he Long-term Bitcoin holders They seem to be leaving the market. During the month of October, long-term holders also took the opportunity to reduce their exposure.
There has been a 2.2% decline in supply held by long-term holders, which translates into distribution of more than 330,000 BTC. This is still a modest reduction compared to December 2024. At that time, LTH supply fell by 5.2% and by 5.05% in March 2024, and both were about double.
Meanwhile, Darkfost has stated that this trend is important and should be monitored closely. At the time of writing this article, The price of bitcoin It was trading at $107,544, caused by a drop of almost 3% in the last 24 hours. BTC price may be going down, but investors are starting to show bullish sentiment as its trading volume has increased by over 55% in the same time period.
Featured image from Pixabay, chart from Tradingview.com
Editorial process for bitcoinist focuses on providing thoroughly researched, accurate and unbiased content. We maintain strict sourcing standards and every page undergoes diligent review by our team of technology experts and experienced editors. This process ensures the integrity, relevance and value of our content to our readers.
