On-chain data shows Bitcoin short-term holders have extended their underwater streak, with BTC continuing to trade under their cost basis.
Bitcoin Short-Term Holders Are Still Holding Net LossesNow, here is the chart shared by Glassnode that shows the trend in the Bitcoin STH NUPL over the last several years:
As displayed in the above graph, the Bitcoin STH NUPL has been negative recently, indicating that the recent buyers of the asset have been holding a net unrealized loss.
The group first went underwater back in November when the cryptocurrency’s price witnessed its crash. BTC steadied course in December and has seen some recovery in January, but even at the peak of the surge, the STHs couldn’t return to profits.
“A recovery above ~$98K appears to be the minimum threshold required to return this cohort to a net profitable state,” explained the analytics firm. It now remains to be seen whether the unrealized loss streak of the STHs will extend further in the near future or if BTC will reclaim its cost basis.
The NUPL provides information about the profits and losses that Bitcoin investors have yet to capture. Another metric called the Net Realized Profit/Loss covers the profits and losses that BTC holders are “harvesting” through their transactions.
BTC PriceAt the time of writing, Bitcoin is trading around $90,900, down more than 2% over the past week.
