Cryptocurrency holders have been having a hard time for some time. Some speculators are in “panic” mode as nearly all of them are in the red, according to information in the industry.
In the latest edition of its weekly newsletter, “The Week On-Chain,” analytics firm Glassnode revealed 97.5% unrealized losses among Bitcoin’s short-term holders (STHs).
If you check the charts, you’ll see that BTC price action in recent months has tested the resolve of investors, but none more so than those who bought BTC over the past three months.
Entities holding coins for 155 days or less, have seen their aggregate cost basis fail as market support.
Evidence from Glassnode notes claims that as of Sep. 17, the cost basis for those not spending BTC is now $28,000 which is around five percent above current spot price.
The research mentioned earlier said that the firm separated the STH cohort into holders and spenders. They discovered a relationship between abrupt changes in implied (unrealized) profitability and the shift in spending by STHs (realized profitability).
The result, it says, is what it calls a “non-trivial change in sentiment.”
“From this perspective, we can see that the cost basis of STHs who are spending fell below the cost basis of holders as the market sold off from $29k to $26k in mid-August,” “The Week On-Chain” explained.
“This suggests a degree of panic and negative sentiment has taken hold in the near term,” the magazine concludes.