Short-Term Bitcoin Investors Surrender $7.8B in Losses as BTC Tests $90K Level

The Bitcoin (BTC) market has entered a phase of intense volatility, with recent price action triggering record-breaking loss realizations among short-term holders. Following its near-$100,000 peak, BTC has retraced sharply, approaching $90,000—a decline that has rattled some investors but could signal a potential local bottom.

On-chain data from Glassnode shows that short-term holders—those who have held BTC for less than 155 days—offloaded 83,000 BTC (valued at $7.8 billion) to exchanges at a loss over the past 48 hours. This marks the largest notional loss recorded in such a short timeframe for this investor group.

Such behavior, while unsettling, has historically indicated market capitulation. Previous instances where short-term holders sent $2 billion or more in BTC to exchanges at a loss often marked key price floors, followed by a stabilization phase or an eventual recovery.

At present, nearly 678,000 BTC are held at a loss, a direct consequence of recent profit-taking near the $100,000 milestone and positions established during the final stretch of the rally.

While Bitcoin’s 10% retracement has dampened some bullish momentum, the loss realization trend underscores the emotional toll of market volatility. However, for seasoned market participants, these patterns often precede the consolidation required for Bitcoin’s next significant move.