Bitcoin’s Short-Term Holders Remain Profitable, Limiting Potential Upside/Downside

Recent data suggests that Bitcoin short-term holders (STHs) are largely sitting on profits. This finding offers valuable insight into the market’s dynamic behavior and has implications for understanding potential future price movements. The average acquisition price of STHs’ Bitcoin holdings remains comfortably below current market prices, according to Glassnode on-chain analytics. While recent dips have impacted prices, the majority of these buyers are still holding profitable positions. This presents a positive indicator for limiting downside risk as it reduces the likelihood of forced selling by those who haven’t experienced losses.