Bitcoin Short-Term Holders Massively Send BTC to Exchanges at a Loss

The recent Bitcoin correction is hitting short-term holders hard. During the trough of the drop below $60.000. short-term holders (STH) are sending their Bitcoin to exchanges at a loss en masse, resulting in the largest loss realisation since February. The Bitcoin price currently stands at $63K, a recovery of 0.5% in the past 24 hours.

Bitcoin is available at OKX and Bybit.

More than 59,000 Bitcoin Sent at a Loss

On-chain data shows that short-term holders, defined as investors who hold their Bitcoin for less than six months, are reacting emotionally to the price drop. In a 24-hour period at the peak of the correction, more than 60,200 BTC moved from STH addresses to exchanges. Of that total inflow, more than 59,000 BTC arrived at a loss.

This kind of panic selling is typical for the group that most often trades on emotion. When the Bitcoin price drops below a psychologically important level, such as the $60.000 threshold, it almost always triggers an increased outflow from STHs to exchanges. The chart from CryptoQuant shows that the loss realised during this period is significantly larger than during previous corrections in March to May.

Tough Climate for Bitcoin Holders

The situation fits into a broader trend that has been putting pressure on the market for some time. Earlier this week, analysts already reported that losses in the Bitcoin market are approaching record levels, while spot volume on crypto exchanges is also falling to its lowest level since 2023. This points to a market where little buying power is available to support prices.

Analyst Darkfost states that the backdrop for Bitcoin remains very challenging. STHs are often the first victims in such circumstances, as they typically enter at higher levels and are the first to capitulate during a decline. The Glassnode founder indicates that the ultimate Bitcoin bottom may lie between $46.000 and $54.000, meaning that STHs who are selling now may still be early. For investors with a longer horizon, this may offer perspective, but the short-term holders who exit now take the hit directly.