Bitcoin STH Losses: Bull Run Still Alive?
Bitcoin STH Losses: Bull Run Still Alive?
Bitcoin's price has consolidated between $81,000 and $86,000 recently, indicating uncertainty. While some on-chain indicators point to a bearish outlook, new data suggests the bull run may not be over.
BTC Investors Aren't Panicking (Yet)
Blockchain analytics firm Glassnode reported that Bitcoin short-term holders (STHs) are experiencing increasing unrealized losses. This metric, representing losses on paper before assets are sold, is approaching a significant +2σ threshold, historically associated with selling pressure.
However, Glassnode emphasizes that the magnitude of these STH losses remains within the typical range of a bull market. These losses are significantly smaller than those observed during the market sell-offs of 2021 and 2022.
Key takeaway: The current STH losses, while substantial (over $7 billion in the last 30 days), are dwarfed by previous bear market capitulations, suggesting the market hasn't yet reached full panic mode.
Source: @glassnode on X
Comparison to Past Capitulation Events:
- May 2021: Realized losses reached $19.8 billion
- 2022: Realized losses peaked at $20.7 billion
The current losses, while substantial, are well below these figures. This divergence suggests that the market might not have fully capitulated.
Bitcoin Price Update
At the time of writing, Bitcoin is trading around $84,300, up 0.3% in the last 24 hours. The seven-day change is a modest -0.6%, highlighting market volatility.
Source: BTCUSDT chart on TradingView
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Conduct your own thorough research before making any investment decisions.
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