Bitcoin price dropped 14% over the past week as on-chain analysts flagged the biggest short-term holder capitulation in BTC▼$60,787.00 history.
BTC price is flashing a deeper stress signal as holder losses hit record levels and market sentiment turns sharply bearish.
As of press time, BTC trades around $62,800, down 0.7% on the day and 14% over the past seven days, per Bitcoin Foundation’s price page.
Frank Fetter, an on-chain analyst, shared a chart on X, showing the short-term holder realized profit and loss ratio falling to a new all-time low, saying the markets is now witnessing the “biggest short-term holder capitulation in the history of bitcoin.”
Short-term holders usually refer to investors who bought more recently and are more likely to sell when price moves against them. The chart suggests that this group is now realizing losses at a deeper level than in previous Bitcoin drawdowns.
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Long-Term Holders Also Feel Pressure
The pressure isn’t just on new buyers either. CryptoVizArt, a lead research analyst at Glassnode, mentioned on X that long-term holders now have about 5.3 million BTC at a loss.
This beats the number from after the FTX crash and is the highest it’s been since the COVID-19 crash. As CryptoVizArt put it, the big chunk of supply that’s underwater means “the resolution process is still in progress.”
Sentiment Flips With Price
Meanwhile, Santiment, a crypto market intelligence platform, said sentiment around Bitcoin has moved almost perfectly with price instead of ahead of it.
On May 22, when Bitcoin was at its late-May peak, sentiment was very positive, the firm argues. Then, as prices fell, sentiment turned negative too, reaching its lowest point around June 3.
Santiment points out that traders got super optimistic at the top and utterly bleak at the drop.
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