Bitcoin’s (BTC) Wild Ride: Sudden $91K Drop Sparks Investor Fear

1. Bitcoin dipped below $100K, putting significant short-term holder (STH) supply into loss.
2. Long-term holders (LTHs) remained largely unaffected, but their unrealized profits have declined.
3. Bearish sentiment across social media peaked in over a year amid broader market turmoil.

Bitcoin’s recent price action sent shockwaves through the crypto community as it slipped below the $100K mark over the weekend. Glassnode data revealed that at $97K, the supply held by short-term holders (STHs) in loss and profit was evenly split at approximately 11%.

Source: Glassnode

This marked the most significant loss exposure for STHs since early January. As Bitcoin tumbled, panic selling among short-term investors contributed to increased volatility, forcing many to exit their positions at a loss.

Despite this downturn, Bitcoin stabilized above $96K at the time of reporting. The question now remains whether this correction was merely a temporary shakeout or a deeper trend reversal. Historically, rapid declines of this nature have often been followed by sharp rebounds, catching many off guard.

Long-Term Holders Stay Unshaken Amid Market Jitters

While STHs faced mounting losses, Bitcoin’s long-term holders (LTHs) remained largely insulated from the turbulence. Glassnode noted that less than 0.01% of their supply was in loss, highlighting the resilience of these investors.

However, LTHs have steadily declined their unrealized profit share since November, reaching their lowest levels since September. This trend suggests that long-term investors are not aggressively accumulating at current prices.

Source: Glassnode

Instead, they are either holding onto their profits or waiting for clearer market signals before re-entering. The lack of renewed accumulation could indicate caution among seasoned investors, who are likely observing macroeconomic trends before making decisive moves.

Market Sentiment Turns Bearish as Global Stocks Bleed

According to Santiment, Bitcoin briefly plunged as low as $91.2K as the broader crypto market suffered alongside global stock markets. Financial media attributed the turmoil to renewed concerns over ‘Trump’s trade war,’ though market analysts debate whether this is the sole factor driving the decline.

The correlation between traditional markets and cryptocurrencies remains a key discussion point, as Bitcoin’s movement often mirrors macroeconomic shifts.

Social media sentiment reflected the panic, with bearish commentary peaking at its highest level in over a year. The sharp downturn fueled speculation about a coordinated sell-off designed to shake out retail traders at local lows. While the reasoning behind the plunge remains uncertain, the market’s reaction underscores the continued sensitivity of crypto investors to external shocks.

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