Bitcoin Short-Term Holders Have Realized Huge Losses Recently

A new report from Glassnode has revealed that the Bitcoin short-term holders took part in the largest loss-taking event since 2022 in the recent crash.

A recent report by Glassnode has highlighted the significant losses incurred by Bitcoin short-term holders during the recent market downturn, making it the largest loss-taking event for this cohort since 2022.

According to the latest weekly report from Glassnode, Bitcoin short-term holders, or STHs, experienced substantial losses during the recent market downturn.

The report classifies “short-term holders” as those who have purchased their Bitcoin coins within the past 155 days. Together with the “long-term holders” (LTHs), STHs comprise one of the two primary market segments based on holding time.

Generally, the longer an investor holds onto their coins, the less likely they are to sell them at any given time. As a result, LTHs are considered the more steadfast market participants, able to endure both market crashes and rallies, while STHS are more likely to be influenced by fear, uncertainty, and doubt (FUD) or fear of missing out (FOMO).

Given this, it is perhaps unsurprising that the STH cohort once again demonstrated a strong response to the recent volatility in the Bitcoin price. And since it was a crash, the STHs reacted by panic-selling at a loss.

The following chart shows the trend in the Bitcoin Realized Loss specifically for the STHs over the past few years:

The Realized Loss indicator measures the total loss that STHs realize through their selling. It's also important to note that the metric is “entity-adjusted,” meaning that it includes the data for entities rather than addresses.

An entity refers to a cluster of addresses that Glassnode has determined to belong to the same investor through its analysis. Transactions made between the wallets of the same investor would naturally not correspond to any real “loss-taking,” so excluding them from the data makes sense.

As can be seen in the chart, the Bitcoin STH Realized Loss did indeed register a spike during the latest market downturn, indicating that STHs made substantial transactions at a loss.

At the peak of this capitulation event, the indicator's value hit $595 million, which is the largest loss-taking the cohort has shown since the FTX collapse that led to the bottom of the 2022 bear market.

“Furthermore, only 52 out of 5655 trading days (

From the chart, it appears that large spikes in the metric have coincided with at least local bottoms in the price, suggesting that this loss-taking event may have also marked another bottom for Bitcoin.

BTC Price

At the time of writing, Bitcoin's price is trading at around $58,800, up 3% over the past week.

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