The recent price slump in Bitcoin, caused by a turbulent cryptocurrency market, has sent many investors into panic mode, forcing them to offload their BTC holdings at a loss.
However, blockchain analytics firm Glassnode noted that a group of Bitcoin investors remained resilient despite the crypto market volatility, saying that long-term holders of the firstborn crypto are unshaken by the current market slump.
Long-Term Holders ‘Largely Unaffected’
Glassnode said that Bitcoin, like other cryptocurrencies, experienced a shaky week in which traders saw the world’s most dominant digital asset crash below the $100,000 level.
At one point, Bitcoin’s price nearly hit the $90,000 level, at $92,800, on February 3, which was the lowest since BTC recorded $90,890 on January 13.
On the brighter side, the blockchain analytics firm noted that BTC’s long-term holders seem insulated from all the chaos surrounding the cryptocurrency community, saying, “#BTC’s long-term holders (LTHs) remain largely unaffected.”
Glassnode revealed that data showed nearly 0.01% of the supply of these BTC holders was in loss, emphasizing the resiliency of long-term investors in times of market turbulence. However, the crypto firm remarked that these Bitcoin investors experienced a decreasing unrealized profit.
“However, their unrealized profit share has steadily declined since November, now at its lowest since September – suggesting no renewed accumulation yet,” Glassnode said in a post.
The analyst noted that BTC holders are not aggressively buying at current prices, possibly waiting for better market signals before resuming accumulation.
Bitcoin Short-Term Holders Bleed
Meanwhile, data showed that another segment of Bitcoin investors suffered the most from the market crash – short-term holders.
According to Glassnode, short-term BTC holders experienced a significant loss after the crypto’s price slid below the $100,000 level, causing panic among these traders.
#Bitcoin dipped below $100K over the weekend, pushing a notable amount of short-term holder (STH) supply into loss. At $97K, the supply in loss & profit held by STHs was evenly split at ~11% – the largest loss exposure for STHs since early January: https://t.co/Drjy6ahQMm pic.twitter.com/gypNiJ0BqX
— glassnode (@glassnode) February 3, 2025
Glassnode said that when Bitcoin plummeted to $100,000 over the weekend, it pushed “a notable amount of short-term holder (STH) supply into loss.”
“At $97K, the supply in loss & profit held by STHs was evenly split at ~11% – the largest loss exposure for STHs since early January,” the blockchain analytics firm said in an X post.
Bearish Market Sentiment
An analyst noted that Bitcoin briefly dipped so low that it nearly hit $90,000 per coin, as the dominating crypto suffered after the market crash.
“Bitcoin plummeted to as low as $91.2K as all of crypto has dipped with world stock markets starting the week with heavy bleeding. Media outlets seem to be attributing plummeting sectors to ‘*****’s trade war’,” market intelligence platform Santiment said in a post.
Bitcoin plummeted to as low as $91.2K as all of crypto has dipped with world stock markets starting the week with heavy bleeding. Media outlets seem to be attributing plummeting sectors to ‘*****’s trade war’.
Whether this is the primary reason or if there are other… pic.twitter.com/ij1bQ6xfUu
— Santiment (@santimentfeed) February 3, 2025
Santiment added that there have been overwhelmingly negative reactions from investors in the cryptocurrency community as a result of the price decline, and for a moment it seems BTC is about to enter bearish territory.
The market intelligence platform noted that at the moment, Bitcoin was able to pull back to $96,000.
“Was this flush orchestrated to get trigger-happy retail traders to sell at a local bottom? Historically, markets virtually always move the opposite direction of the crowd’s expectations,” Santiment asked in a post.
Featured image from Pexels, chart from TradingView