Bitcoin Short-Term Holders Face Over $900 Million in Daily Realized Losses, Exceeding Past Crises

Short-term Bitcoin holders are currently realizing over $900 million in daily losses, a figure that surpasses the scale of losses observed during both the 2021 China mining ban and the 2022 FTX collapse. This significant downturn underscores intense selling pressure from newer investors in the cryptocurrency market. The data, highlighted by Cointelegraph, indicates a challenging period for recent Bitcoin entrants.

According to the announcement, > "Short-term Bitcoin holders are now realizing over $900M in daily losses, surpassing both the China mining ban and the FTX collapse in scale." This metric typically refers to coins moving on-chain at a price lower than their acquisition cost, specifically from investors who acquired Bitcoin within the last 155 days. Such substantial realized losses often precede market bottoms, as weaker hands are compelled to sell their holdings.

The 2021 China mining ban triggered a sharp decline in Bitcoin's hash rate and price, causing widespread panic and significant realized losses across the market. Similarly, the collapse of the FTX exchange in November 2022 sent shockwaves through the crypto ecosystem, leading to a dramatic price plummet and billions in investor losses. On-chain data from that period revealed a surge in realized losses, particularly among retail investors.

The current $900 million daily loss figure suggests that the recent market conditions are prompting short-term holders to offload their assets at a loss at an unprecedented rate compared to these prior major events. Analysts are closely monitoring on-chain metrics for signs of accumulation by long-term holders, which could signal a potential market recovery. The prevailing market sentiment is influenced by broader macroeconomic factors and ongoing regulatory uncertainties impacting the digital asset space.