Bitcoin’s price has been falling, and this has put some investors under stress. People who have held Bitcoin for a long time seem to be managing the situation better, but those who bought recently are starting to panic. Market data suggests that many short-term investors might soon sell at a loss, but looking at past trends, the situation is not as bad as it may seem.
Short-Term Investors Are Losing Money, But It’s Not the Worst It Has Been
Recent data from blockchain analysis shows that short-term Bitcoin investors—those who have owned Bitcoin for less than five months—have lost about $7 billion in the past month. It has been reported by Glassnode, a blockchain research firm, that this is the longest losing streak in the current market cycle.
In addition to these losses, many of these investors still hold Bitcoin that is now worth less than what they paid for it. This has put them in a difficult situation where many may soon decide to sell. However, when past market crashes have been examined, much bigger losses have been seen:
- During the 2021–2022 crypto crash, short-term investors lost around $19.8 billion and $20.7 billion in two separate events.
- Compared to those numbers, today’s $7 billion loss is much smaller.
This shows that while short-term investors are struggling, similar patterns have been seen before in past bull markets.
Image From X: Glassnode
Bitcoin’s Market Confidence Is Low, But Signs of Recovery Are Appearing
Even though Bitcoin is still considered to be in a bull market, market confidence has been shaken. Since reaching its all-time high in January 2025, Bitcoin’s price has dropped by 23%.
A measurement called the Bull Score, which shows how strong Bitcoin’s market momentum is, has dropped to 20, its lowest level in two years. In the past, Bitcoin has only made strong recoveries when the Bull Score has been above 60. This suggests that the market is still uncertain, as more people are selling than buying.
Another reason for Bitcoin’s price drop has been the large amount of money leaving Bitcoin ETFs (exchange-traded funds). Since February, around $4.4 billion has been withdrawn from these funds. This has put more pressure on Bitcoin’s price, as many ETF investors had bought Bitcoin when prices were much higher.
Bitcoin ETFs Are Starting to Recover
However, some positive signs have appeared. Data from SosoValue has shown that last week, Bitcoin ETFs began receiving more money instead of losing it.
- Over $744 million was added to Bitcoin ETFs by the end of the week.
- This ended a streak of five weeks in a row where money was being withdrawn.
With more money now flowing into Bitcoin ETFs, investor confidence could be improving, which might help stabilize Bitcoin’s price.
Where Does Bitcoin Stand Now?
At the time of writing, Bitcoin is trading at $84,815. While it is still far from its January high, the return of big investors may help prices recover in the coming weeks.
For now, short-term investors are still under pressure, but history has shown that those who hold on during difficult times often see better results later on.
