Bitcoin panic selling costs new investors $100M in 6 weeks

Bitcoin’s recent price volatility has triggered a wave of panic selling, costing new investors over $100 million in realized losses within just six weeks, according to data from CryptoQuant.

The on-chain analytics platform revealed that short-term holders (STHs), specifically those who bought Bitcoin between one and three months ago, have suffered the most as BTC prices declined sharply from their mid-January all-time highs. Many of these investors are now exiting their positions underwater, contributing to the increased selling pressure in the market.

Key Findings:

🔻 $100 million in losses for Bitcoin speculators since February
🔻 Short-term holders (STHs) are selling at a loss, unable to withstand the recent drawdown
🔻 Market Cap vs. Realized Cap for these holders shows locked-in losses, indicating capitulation
🔻 The Net Unrealized Profit/Loss (NUPL) score for 1-3 month holders is now -0.19, the worst level in over a year
🔻 This trend points to more coins being held at a loss, which increases downward price pressure

What’s Happening in the Bitcoin Market?

Bitcoin’s 30% drop from its mid-January all-time highs has rattled many recent buyers. While large-volume, long-term investors continue to buy the dip, short-term speculators are panic selling, locking in significant losses.

CryptoQuant warns that these behaviors signal a potential shift in market structure.

“This behavior is contributing to increased selling pressure and could lead to further downward price action in the short term,” Onchained, a CryptoQuant contributor, explained.

Is This Just Another Correction — or Something More?

Historically, Bitcoin bull market corrections are short-lived, often followed by strong rebounds. However, CryptoQuant’s latest report suggests this pullback may not be so quick to resolve.

“On-chain indicators point to a potential structural shift that could preclude a broader bearish phase,” the report noted.

Final Thoughts:

Panic selling by short-term holders has exacerbated BTC’s recent declines, with $100 million in realized losses in just six weeks. Long-term holders and institutional investors appear to be buying this dip, but short-term pain is likely to continue. The market could be facing a longer correction phase, with investor sentiment shaky and realized losses mounting.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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