28% Underwater: Will Bitcoin’s Comeback Turn Pain into Profit?

28-Underwater-Will-Bitcoins-Comeback-Turn-Pain-into-Profit

Since Bitcoin broke below the 91K level, Short-Term Holders (STHs) have been sitting on unrealized losses. When the price dipped to 78K yesterday, STHs were collectively facing an average loss of -15%. Notably, STHs currently hold 28% of the total Bitcoin supply, meaning that 28% of the circulating supply has been underwater since Bitcoin fell below their realized price. This development is significant for market dynamics, as it highlights considerable unrealized losses within a substantial segment of the market.

However, Bitcoin’s bounce back to the 84-85K range today has alleviated some of this pressure, reducing STHs’ average unrealized losses to -8%. If Bitcoin continues its upward momentum and reclaims the STHs’ realized price level, it could potentially ease further selling pressure. This scenario seems plausible, given that STHs have recently shown a decline in aggressive selling behavior.