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Bitcoin Capitulation Persists As Short-Term Holders Realize $0.48B Daily Losses

On-chain data shows the Bitcoin short-term holders continue to capitulate as they are realizing net losses of $0.48 billion every day.

Bitcoin Short-Term Holder Net Realized Profit/Loss Is Notably Red

According to data from on-chain analytics firm Glassnode, the Net Realized Profit/Loss has been negative for the Bitcoin short-term holders recently. This indicator measures, as its name suggests, the net amount of profit or loss that BTC investors are harvesting through their selling.

The version of the metric that’s of relevance here specifically tracks this for the short-term holders (STHs), a BTC investor cohort that includes only buyers from the last 155 days.

Statistically, the longer an investor holds onto their coins, the less likely they become to sell them in the future. Since the STHs represent the new entrants into the market, their resilience tends to be low, and they may take part in panic selling during market volatility.

Recently, Bitcoin has faced a major drawdown and the STHs have naturally reacted to it. Below is the chart shared by Glassnode that shows how the 7-day exponential moving average (EMA) of the Net Realized Profit/Loss has fluctuated for this group during the recent volatility.

As is visible in the graph, the Bitcoin STH Net Realized Profit/Loss saw a deep plunge into the negative territory during the price downturn that followed the October high, implying realized losses notably outweighed the profits. In January, the metric recovered toward the neutral mark as the market saw an uplift, but the price drawdown since the end of the month has again taken the indicator to a highly red level.

On February 6th, the STH Net Realized Profit/Loss fell to a value of -$1.24 billion per day, notably lower than the red peak observed last year. Since this low, the metric has risen a bit and today, it’s sitting at -$0.48 billion per day. “While the intensity has cooled, the broader regime still signals a market under pressure, with participants in the base formation phase continuing to capitulate,” explained the analytics firm.

In some other news, the Bitcoin Coinbase Premium Gap has been negative recently, as highlighted by CryptoQuant author IT Tech in an X post.

The Coinbase Premium Gap tracks the difference between the Bitcoin spot price listed on Coinbase (USD pair) and that on Binance (USDT pair). From the chart, it’s apparent that the metric has maintained at red values since mid-December, indicating that Coinbase users have been applying a higher amount of selling pressure than Binance traders.

Coinbase is mainly used by US-based investors, especially the large institutional entities, so this trend can be a sign that there isn’t much demand for BTC among them right now.