Short-Term Holders Feeling the Heat
Bitcoin’s recent price drop has left short-term holders, who typically buy and sell within a few weeks, in a tough spot. They’re now trading below their “realized price” of $66,200, meaning they’re sitting on unrealized losses.
What’s the Realized Price?
The realized price is the average price at which short-term holders acquired their Bitcoin. When Bitcoin trades below this price, it means they’re losing money on paper.
Tough Choices for Short-Term Holders
With Bitcoin below their realized price, short-term holders face a dilemma:
- Sell at a loss: Cut their losses and sell their Bitcoin.
- Hold and hope: Stick it out and hope Bitcoin recovers.
Potential Impact on Price
If a significant number of short-term holders sell, it could lead to a further price decline in the short term.
Long-Term Holders Unfazed
In contrast to short-term holders, long-term holders tend to view price dips as temporary setbacks. They’re more likely to hold onto their Bitcoin, believing in its long-term potential.
Current Situation
At the time of writing, Bitcoin is trading around $64,000. Analysts warn that it could fall to $60,000 if the selling pressure continues.
