TL;DR
- Short-term Bitcoin holders sent 79,300 BTC, worth approximately $7 billion, to exchanges, selling at a loss during the recent price crash.
- This massive sell-off reflects the fear and uncertainty dominating short-term speculators, as BTC price hit 15-week lows.
- Long-term investors, however, remain firm, providing support to the market amid the volatility.
Short-term Bitcoin holders, also known as short-term holders (STHs), entered panic mode after Bitcoin’s price dropped below $90,000. According to the latest data from on-chain analytics platform CryptoQuant, these holders moved 79,300 BTC, equivalent to about $7 billion, to exchanges in a 24-hour period, marking the largest loss-making sell-off of 2025. This event highlights the desperation felt by some market participants in response to Bitcoin’s volatility, which has been affecting investors’ confidence in the short term.
Despite BTC/USD falling to 15-week lows on February 25, some analysts argue that this move represents an opportunity rather than a cause for panic. Axel Adler Jr., an analyst at CryptoQuant, pointed out that short-term holders, typically those holding Bitcoin for less than 155 days, were pushed to liquidate their positions due to the market’s uncertainty. The price drop likely triggered panic selling, as reflected in the Spent Output Profit Ratio (SOPR) metric, which fell to 0.964, its lowest level since August 2024. This serves as a reminder of how sentiment in the market can shift drastically in response to sudden price movements.
An Opportunity for Long-Term Investors
Despite the fear among speculators, long-term investors remain optimistic and continue to hold onto their Bitcoin positions, withstanding the price pressure. These long-term holders have shown great resilience in the face of volatility, and their commitment has provided support to the market. James Check, creator of the on-chain resource Checkonchain, highlighted that the support zone around $90,000 could be crucial for Bitcoin’s future, suggesting that below this level, the market faces little resistance. He also emphasized the long-term outlook, noting that Bitcoin’s fundamental value continues to shine through despite short-term fluctuations.
While some critics and market observers may see this drop as a sign of weakness, others, like digital asset lawyer Joe Carlasare, argue that such fluctuations are a normal part of Bitcoin’s cycle. Carlasare concluded that, while the price may continue to fall, this is a “buy zone” rather than an area for despair.
While panic may have dominated short-term speculators, the situation still presents opportunities for long-term investors who continue to believe in Bitcoin’s potential.
