Bitcoin Dips to $90K as Short-Term Holders Liquidate $7.8B in Losses
The Bitcoin (BTC) market is no stranger to volatility, but recent price movements have led to unprecedented loss-taking among short-term investors. After approaching the much-anticipated $100,000 milestone, BTC has slid nearly 10% to hover around $90,000, triggering a wave of sell-offs by holders looking to cut losses.
Data from Glassnode reveals that over the past 48 hours, short-term holders—those who have held BTC for fewer than 155 days—have transferred 83,000 BTC (valued at $7.8 billion) to exchanges at a loss. This level of notional loss-taking is the largest ever recorded in a two-day span, underscoring the psychological impact of the recent market downturn.
Historically, such significant loss realizations among short-term holders have coincided with local price bottoms. When these investors offload $2 billion or more in BTC at a loss, it often marks the end of a correction phase and the start of consolidation.
With Bitcoin now trading just 7% below its all-time high, the losses are concentrated among buyers who entered the market during the final leg of the recent rally. Glassnode estimates that approximately 678,000 BTC are currently held at a loss, largely stemming from purchases made in the past week.
While this wave of selling might alarm some, it reflects a broader market cycle in which weak hands capitulate, creating opportunities for long-term investors to accumulate. As Bitcoin hovers near a key psychological level, market participants are closely watching for signs of stabilization and a potential recovery.
