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Ruholamin Haqshanas
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Ruholamin Haqshanas
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Bitcoin investors who bought at its all-time high of $109,000 in January are now panic-selling as prices decline, according to on-chain analytics firm Glassnode.
The firm warns that continued selling pressure could push Bitcoin’s price down to $70,000.
In a March 11 market report, Glassnode highlighted that recent sell-offs among top buyers have led to “intense loss realization and a moderate capitulation event.”
This trend is evident in the short-term holder realized price—an average purchase price for those who have held Bitcoin for less than 155 days.
Bitbo Data: Short-Term Bitcoin Holder Realized Price Was $62K in October
According to Bitbo data, the short-term holder realized price was around $62,000 in October.
As of now, that figure has surged to $91,362, marking a 47% increase over the past five months.
Meanwhile, Bitcoin is trading at $81,930, leaving short-term holders with an average unrealized loss of approximately 10.6%, according to CoinMarketCap data.
Glassnode noted that this metric indicates a shift in market momentum, with capital flows turning negative and demand weakening.
“Investor uncertainty is affecting sentiment and confidence,” the report stated.
The firm also pointed out that short-term holders are “deeply underwater” between the $71,300 and $91,900 price levels, making $70,000 a possible bottom if the selling pressure continues.
“The probability of forming a temporary floor in this zone is meaningful, at least in the near term,” Glassnode added.
Market research firm 10x Research described the current situation as a “textbook correction” in its March 10 analysis, noting that nearly 70% of all selling came from investors who purchased Bitcoin within the last three months.
BitMEX co-founder Arthur Hayes also weighed in, predicting that Bitcoin could retest $78,000, and if that level fails, the next support may be at $75,000.
Glassnode compared the ongoing sell-off to August 2023, when Bitcoin tumbled from $68,000 to around $49,000 due to recession fears, weak U.S. employment data, and underwhelming growth among tech stocks.
However, Bitcoin rebounded 7.5% on March 11 as U.S. markets stabilized after an earlier drop.
The recovery came following former President Donald Trump’s remarks, in which he refused to rule out the possibility of a recession.
Bitcoin Still a Risk Asset: Analyst
Bitcoin has long been hailed as a potential hedge against geopolitical and fiscal instability, often compared to gold as a store of value.
However, despite its decentralized nature and limited supply, Bitcoin continues to trade like a risk asset, moving in tandem with equities rather than diverging as a safe haven, according to Garrison Yang, co-founder of Web3 development studio Mirai Labs.
In a recent interview with Cryptonews.com, Yang argued that Bitcoin’s correlation with traditional financial markets remains strong, posing challenges to its hedge narrative.
For Bitcoin to establish itself as a true hedge against macroeconomic instability, Yang said that it must break its correlation with U.S. equities and other risk assets.
Currently, Bitcoin’s price movements are heavily influenced by investor sentiment in traditional markets, particularly the stock market.
