Bitcoin prices dropped significantly last week due to a deleveraging event, causing a large number of short-term holders to take a serious toll. According to Glassnode, the short-term holder cost basis has historically offered support during uptrends, but recent data suggests that a significant portion of the supply is currently being held at an unrealized loss.The market turmoil pushed Bitcoin close to $26k and it is still down by over 10%. Long-term holders have remained largely unfazed, but short-term holders have been hit hard, with 88.3% of the supply controlled by them currently underwater.Analysts have speculated that the bear market may not be over yet and Bitcoin could drop to $12.5k. Monitoring resource Material Indicators described the market as a game of chicken to see who will make the move to break the chop, while another trader referred to the intraday movements as the “death chop.”
| Information |
Details |
| Geography |
Global |
| Countries |
|
| Sentiment |
negative |
| Relevance Score |
9 |
| People |
None |
| Companies |
Glassnode, Material Indicators, Binance, PrimeXBT, None |
| Currencies |
Bitcoin, Ethereum |
| Securities |
None |
