Recent on-chain data reveals significant capitulation among short-term Bitcoin holders, who are currently realizing net losses averaging $0.48 billion each day. This unsettling trend is highlighted by analytics from Glassnode, which focuses on the Net Realized Profit/Loss specifically for short-term holders, defined as investors who have bought Bitcoin within the last 155 days.
The metric has been trending negatively for this group, indicating that realized losses are surpassing profits. Historically, short-term holders are more susceptible to panic selling during periods of market volatility, given their status as newer market entrants. As Bitcoin has experienced a notable price downturn following its peak in October, these investors have reacted strongly, engaging in selling as their positions falter.
The volatility in the market has been illustrated through a chart detailing the 7-day exponential moving average (EMA) of the Net Realized Profit/Loss for short-term holders. Following a significant drop in value, this metric indicates that losses have recently dominated over any realized gains. Although there was a brief recovery in January, the ongoing price decline since then has driven the indicator back into negative territory, with recent figures reflecting a drastic low of -$1.24 billion per day observed on February 6.
Although the metric has slightly improved, settling at -$0.48 billion per day, the overall market sentiment remains subdued, with many participants still facing considerable strain. According to Glassnode, the current market environment indicates that even as losses accumulate, selling pressure persists, signaling a phase of capitulation among investors.
Meanwhile, additional insights from CryptoQuant emphasize the prevailing negative trend in the Bitcoin Coinbase Premium Gap. This metric assesses the disparity between Bitcoin’s spot price on Coinbase (USD pair) versus its price on Binance (USDT pair). Since mid-December, this gap has consistently remained in negative territory, suggesting that users on Coinbase—predominantly representing U.S.-based institutional investors—are applying greater selling pressure compared to their peers on Binance.
As a result of the ongoing market dynamics, Bitcoin’s price has continued to decline, currently trading around $64,000, reflecting broader concerns about demand and investor confidence amidst turbulent market conditions.
