Bitcoin Panic Hits Short-Term Investors as Losses Continue for 60+ Days

2 days ago 27

March 30, 2025 by Kashif Saleem

Bitcoin’s short-term holders are panic-selling, with losses sustained for over two months now.
The STH-SOPR has stayed below 1 since January, signaling consistent loss-taking behavior.
Extreme fear from short-term players may signal a bottom, inviting long-term investor accumulation.

It’s been a rough stretch for Bitcoin in early 2025, with the price down a little over 2% this past month. But behind that minor monthly drop lies a more dramatic suggestion. The leading crypto has been swinging wildly, especially through March, where early chaos sent the price plunging before it regained footing mid-month.

That volatility has scared a particular group of investors. Those who hold Bitcoin for a short time — typically between one hour and 155 days — have been showing signs of significant fear. Their behavior has caught the attention of analysts monitoring the health of the market.

IbrahimCosar, a crypto analyst, recently flagged this on CryptoQuant’s Quicktake. He pointed out a key shift in sentiment:

“Short-term holders (STH) are showing an extreme level of panic and fear in the market.”

Bitcoin’s Short-Term Metrics Flash Red

The analysis is focused on the Short-Term Holder Spent Output Profit Ratio, known as STH-SOPR. This key performance indicator evaluates whether short-term holders sold their Bitcoin at a profit, a loss, or at breakeven. A value above 1 indicates profit-taking, while a value below 1 indicates that most people are realizing losses.

And right now? That number has been under 1 for over two months straight. Since late January 2025, the STH-SOPR has remained below that crucial threshold. That’s a clear signal that this investor group has been cutting its losses — not once or twice, but consistently.

The ongoing pattern of loss-selling isn’t just a bad look for confidence — it’s also historically tied to something deeper. Analysts note that when many traders are selling at a loss, it often marks moments of extreme market fear. Oddly enough, that can be a good thing for Bitcoin’s future.

Out With the Fear, In With the Long-Term Play?

This kind of fear-driven sell-off by short-term players has, in the past, set the stage for longer-term investors to take control. These “weak hands,” as they’re sometimes called, tend to exit during downturns. That leaves room for those with a steadier approach to step in and scoop up assets.

When panicked sellers exit, long-term investors can accumulate without the pressure of impulsive market moves. If the past is any guide, these moments of fear often come just before a market floor — the point at which Bitcoin stabilizes and eventually climbs again.

At the time of writing, Bitcoin is trading at 83,105.66, marking a slight gain of 0.25% in the last 24 hours. The price is below all the EMAs of 20, 50, 100, and 200, showing its current downtrend. The RSI also stands at 37, which hints oversold condition for this cryptocurrency.

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