Bitcoin Faces Volatility Pressure as Short-Term Investor Sentiment Shifts

Market analysis suggests that Bitcoin is currently navigating uncertain waters due to changes in short-term investor sentiment. Chain analyst Murphy has identified the short-term holder cost basis (STH-RP) at $108,800 as a crucial indicator for market trends. This metric reflects the average turnover cost for short-term holdings, and if Bitcoin’s price falls below this threshold, short-term investors may shift from unrealized gains to losses, potentially triggering a shift in market sentiment from anxiety to panic. This shift could disrupt the existing upward trend.