Bitcoin (BTC) Investor Sentiment Remains Strong Despite Short-Term Pressure
Despite recent bearish price action, Bitcoin (BTC) investors remain in a relatively strong financial position, according to data from market intelligence firm Glassnode.
Bitcoin Investors Remain Profitable
The average Bitcoin investor is currently holding **6x more unrealized profit than unrealized loss**, highlighting the robust financial position of the average investor. This ratio has remained above the current value for about 20% of trading days.
Short-Term Holders Bear the Brunt
However, short-term holders (STH) – those who have held BTC for less than 155 days – have experienced significant unrealized losses.
STH MVRV Ratio Drops
The STH market value realized value (MVRV) ratio has dropped below the break-even value of 1.0 and is trading at levels similar to August 2023, during the recovery rally after the FTX collapse. This indicates that the average new investor is holding an unrealized loss.
Bitcoin Price Below STH Cost Basis
Bitcoin’s spot price is currently below the entry cost basis for many short-term investors. Data from Cointelegraph Markets Pro and TradingView shows Bitcoin price trading at $57, 450, 7% below the STH cost basis of $62, 400.
Reclaiming the STH Cost Basis
Unless the spot price reclaims the STH cost basis, there is an expectation for further market weakness. The true market mean around the $51, 000 demand zone remains a key area of interest that must be maintained for the bull market to continue. In the event of a local downturn, the pricing level of $51k remains a critical area of interest that must be maintained for further price appreciation.
Continuing the Bull Run
For the bull run to continue, the price has to climb back above the STH cost basis, which will help restore some much-needed confidence in the market.
**Disclaimer:** This information is for educational purposes only and should not be considered investment advice.
