Bitcoin’s current struggles are far from over, as recent on-chain data indicates that short-term holders are feeling the pressure. Despite a brief spike above $71,000 earlier this month, Bitcoin has since dropped to a 30-day low of $63,622. Miners flooding the market with more Bitcoins has only added to the price decrease, leaving short-term holders with unrealized losses as Bitcoin trades below their realized price of $66,200.
Short-term holders are now faced with a tough decision: whether to cut their losses and sell or hold on in hopes of a rebound. Their tendency to sell more often than not could further contribute to a price decline in the short term. On the other hand, long-term holders are more likely to view this dip as a temporary setback and hold onto their assets.
At the time of writing, Bitcoin is trading at $64,381 and faces the risk of falling to $60,000, according to a report from blockchain intelligence firm CryptoQuant. On-chain data also shows that Bitcoin miners have been selling their holdings at a rapid rate, further impacting the market.
It is clear that the current situation is challenging for Bitcoin holders, particularly short-term holders who are feeling the heat of the price decline. The decision to sell or hold onto their assets will have implications for the future price of Bitcoin. As the market continues to fluctuate, it is crucial for investors to stay informed and make decisions based on their individual risk tolerance and investment goals.
In conclusion, the recent on-chain data highlights the struggles faced by Bitcoin holders, especially short-term holders. The decision to sell or hold onto their assets will have a significant impact on the future price of Bitcoin. As the market remains volatile, it is essential for investors to stay informed and make decisions that align with their investment strategy.
