Analysts at Glassnode say that short-term investors may lose money on paper, which could affect the price of the main cryptocurrency if it keeps going down.
The average purchase price of bitcoin is $62.4 thousand. This is the price at which short-term investors bought bitcoins. They held them for less than 155 days.
Analysts are concerned that as soon as the price of bitcoin reaches the average break-even point for this category of holders, they will start selling coins en masse. They fear remaining in the minus again.
Glassnode analyzes data from the Bitcoin blockchain. Onchain analytics is research into information from public blockchain networks like bitcoin and Ethereum. Blockchain is an open registry of transactions, allowing anyone to look at them and draw conclusions. Researchers are using onchain to monitor users' transactions, price forecasting, and to correlate data from other sources.
Glassnode found that long-term and short-term bitcoin holders have different views. The behavior of both groups is used to predict market trends. Coin holders often act differently in the short term.
This shows that most investors in the main cryptocurrency are still making money even as prices keep falling.
Glassnode said that even though short-term holders are few, their losses are a risk for the bitcoin price. So far, investors are not as worried as they were in 2021 or 2022. But there are signs of fear in how the main cryptocurrency is moving.