Bitcoin’s $60K Struggle: 80% of Short-Term BTC Holders Still in the Red

Despite a recent uptick in value, over 80% of short-term Bitcoin holders are still navigating losses. Bitcoin (BTC) crossed over to the $60,000 price level at press time. However, short holders have suffered more losses due to the price volatility.

Short Bitcoin Holders at a Loss

A recent report reveals that over 80% of short-term Bitcoin holders are currently holding their BTC at a loss. This means that their Bitcoin investments are worth less than what they initially paid. The situation arises as Bitcoin continues to struggle around the $60,000 price level.

The analysis draws parallels between the current scenario and similar market conditions in 2018, 2019, and mid-2021. During those periods, a large proportion of short-term holders also faced losses, leading to increased panic selling. This behavior contributed to prolonged bearish trends as investors rushed to cut their losses.

Market Value to Realized Value (MVRV)

AMBCrypto’s analysis of the 30-day Market Value to Realized Value (MVRV) on Santiment confirms the challenges faced by short-term Bitcoin holders. The metric indicates that these holders have been in a loss position for several weeks. The MVRV has remained below zero, signaling that short-term holders have generally been holding at a loss.

As of August 18th, the MVRV improved to approximately 5%, still in negative territory but showing some recovery. Recent price gains have alleviated some pressure on short-term holders, with the MVRV rising to around 1% in the last 48 hours.

Overall Bitcoin Holder Base

Shifting the focus from short-term holders to the overall Bitcoin holder base reveals a more positive outlook. According to data from IntoTheBlock, over 80% of all Bitcoin addresses (approximately 45.45 million addresses) are “in the money,” meaning they hold BTC at a price higher than their purchase price. Only about 12.9% of addresses are “out of the money,” indicating losses based on press time prices.

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