Bitcoin $100K Breakdown Spells Trouble For Short-Term Investors—Study

Christian Encila

5 months ago

3 mins read

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The recent price slump in Bitcoin, caused by a turbulent cryptocurrency market, has sent many investors into panic mode, forcing them to offload their BTC holdings at a loss.

However, blockchain analytics firm Glassnode noted that a group of Bitcoin investors remained resilient despite the crypto market volatility, saying that long-term holders of the firstborn crypto are unshaken by the current market slump.

Long-Term Holders ‘Largely Unaffected’

Glassnode said that Bitcoin, like other cryptocurrencies, experienced a shaky week in which traders saw the world’s most dominant digital asset crash below the $100,000 level.

At one point, Bitcoin’s price nearly hit the $90,000 level, at $92,800, on February 3, which was the lowest since BTC recorded $90,890 on January 13.

On the brighter side, the blockchain analytics firm noted that BTC’s long-term holders seem insulated from all the chaos surrounding the cryptocurrency community, saying, “#BTC’s long-term holders (LTHs) remain largely unaffected.”

Glassnode revealed that data showed nearly 0.01% of the supply of these BTC holders was in loss, emphasizing the resiliency of long-term investors in times of market turbulence. However, the crypto firm remarked that these Bitcoin investors experienced a decreasing unrealized profit.

Bitcoin is currently trading at $99,093. Chart: TradingView

“However, their unrealized profit share has steadily declined since November, now at its lowest since September – suggesting no renewed accumulation yet,” Glassnode said in a post.

The analyst noted that BTC holders are not aggressively buying at current prices, possibly waiting for better market signals before resuming accumulation.

Bitcoin Short-Term Holders Bleed

Meanwhile, data showed that another segment of Bitcoin investors suffered the most from the market crash – short-term holders.

According to Glassnode, short-term BTC holders experienced a significant loss after the crypto’s price slid below the $100,000 level, causing panic among these traders.

#Bitcoin dipped below $100K over the weekend, pushing a notable amount of short-term holder (STH) supply into loss. At $97K, the supply in loss & profit held by STHs was evenly split at ~11% – the largest loss exposure for STHs since early January: https://t.co/Drjy6ahQMm pic.twitter.com/gypNiJ0BqX

— glassnode (@glassnode) February 3, 2025

Glassnode said that when Bitcoin plummeted to $100,000 over the weekend, it pushed “a notable amount of short-term holder (STH) supply into loss.”

“At $97K, the supply in loss & profit held by STHs was evenly split at ~11% – the largest loss exposure for STHs since early January,” the blockchain analytics firm said in an X post.

Bearish Market Sentiment

An analyst noted that Bitcoin briefly dipped so low that it nearly hit $90,000 per coin, as the dominating crypto suffered after the market crash.

“Bitcoin plummeted to as low as $91.2K as all of crypto has dipped with world stock markets starting the week with heavy bleeding. Media outlets seem to be attributing plummeting sectors to ‘Trump’s trade war’,” market intelligence platform Santiment said in a post.

😰 Bitcoin plummeted to as low as $91.2K as all of crypto has dipped with world stock markets starting the week with heavy bleeding. Media outlets seem to be attributing plummeting sectors to ‘Trump’s trade war’.

Whether this is the primary reason or if there are other… pic.twitter.com/ij1bQ6xfUu

— Santiment (@santimentfeed) February 3, 2025

Santiment added that there have been overwhelmingly negative reactions from investors in the cryptocurrency community as a result of the price decline, and for a moment it seems BTC is about to enter bearish territory.

The market intelligence platform noted that at the moment, Bitcoin was able to pull back to $96,000.

“Was this flush orchestrated to get trigger-happy retail traders to sell at a local bottom? Historically, markets virtually always move the opposite direction of the crowd’s expectations,” Santiment asked in a post.

Featured image from Pexels, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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