CDS Crypto News Bitcoin Price Dips to $56,700, Short-Term Holders’ Losses Signal Potential Market Volatility
Crypto News

Bitcoin Price Dips to $56,700, Short-Term Holders’ Losses Signal Potential Market Volatility

55
Bitcoin Price Dips to $56,700, Short-Term Holders’ Losses Signal Potential Market Volatility

Bitcoin Price Dips Below $58K, Key $51K Support Critical for Market Stability

Bitcoin Price Dips Below $58K, Key $51K Support Critical for Market Stability

On Thursday morning, Bitcoin was unable to maintain its position over $58,000, falling to $56,700 and remaining unchanged for the day. The price of Bitcoin is currently $56,720, up 0.35% over the last 24 hours and down 5.72% over the last week, according to statistics from CoinGecko. A recent analysis has shown that there is an increasing risk factor in the cryptocurrency market, even though Bitcoin has dropped to a little under 20% of its all-time high.

According to a report from blockchain analytics startup Glassnode, “The Short-Term Holder cohort remains heavily underwater on their holdings, making them a source of risk for the time being.” Key measures clearly show this group’s financial strain, with their unrealized losses skewing the entire market picture. The research issues a warning that if short-term holders decide to sell their holdings in large quantities, the overall stability may be upset. It is determined that in order to keep the current market structure intact, the $51,000 price level is a crucial support.

Short-Term Bitcoin Investors Struggle as Unrealized Losses Rise Amid Market Volatility

Short-Term Bitcoin Investors Struggle as Unrealized Losses Rise Amid Market Volatility

Unrealized losses for short-term investors have been steadily rising over the last few months, according to the data. This cohort’s age groups, ranging from those holding for a day to those holding for up to six months, are all presently in the red. These investors’ average cost basis is much higher than the current market price, ranging from $59,000 to $65,200. Instead of a full-blown bear market, the authors of the report observed that this state of affairs is similar to the erratic market circumstances seen in 2019.

Until the spot price reclaims the STH (Short-Term Holder) cost basis of $62.4k, there is an expectation for further market weakness,

the report

For more up-to-date crypto news, you can follow Crypto Data Space.

Bitcoin Price Dips to $56,700, Short-Term Holders’ Losses Signal Potential Market Volatility
Written by
lectertodd

Lectertodd is 27 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

Leave a comment

Leave a Reply

Related Articles

Vitalik Buterin Unveils “Info Finance” to Revolutionize Data Collection and Sharing

Discover Vitalik Buterin's new concept of 'Info Finance' and how blockchain can...

Ethereum vs Bitcoin: What’s Next for the Crypto Market After Record Price Breaks?

Ethereum has surged past the $3,000 mark for the first time since...

Ether Bull Run Accelerates After Positive News from Fed and Trump Election Win

Ether Bull Run Accelerates After Positive News from Fed and Trump Election...

Ethereum Price Nears $3K as BlackRock ETF Sees Record Inflows

BlackRock’s Ethereum ETF sees record $60M inflows as ETH hovers near $3K—market...