80% OF BITCOIN SHORT-TERM HOLDERS BACK IN PROFIT AS ANALYST SAYS FOMO IN FULL SWING

Last updated: June 20, 2025, 01:39 | Written by: Vitalik Buterin

80% Of Bitcoin Short-Term Holders Back In Profit As Analyst Says Fomo In Full Swing
80% Of Bitcoin Short-Term Holders Back In Profit As Analyst Says Fomo In Full Swing

The Bitcoin market is experiencing a wave of optimism as a significant portion of short-term holders (STH) have returned to profitability.According to recent data from Checkonchain, a prominent Bitcoin on-chain analysis platform, a remarkable 80% of these investors are now seeing green, a stark contrast to earlier in the month when as many as 65% were underwater. Data from Checkonchain, a Bitcoin onchain analysis program, indicated that 80% of short-term holders (STH) were back in the profit bracket after BTC s recovery above $100,000. Earlier this monthThis resurgence in profitability coincides with Bitcoin maintaining a price above $100,000 for six consecutive days, a feat that has fueled speculation and excitement within the crypto community. 漲跌額. 漲跌幅. 買價But what's driving this surge? Most Bitcoin Holders Are Still in Profit. According to the BTC Percent Supply in Profit chart, more than 80% of people who hold Bitcoin are currently in profit. Meanwhile, not less than 20% are holding their coins at a loss. Adler points out that in the past, when between 95% and 98% of holders were in profit, the market was overheating.Market analysts point to a growing sense of FOMO (Fear of Missing Out), as potential investors scramble to get in on the action, pushing prices higher and further rewarding those who held on during the recent volatility.Is this a sustainable rally, or are we witnessing another fleeting moment of crypto exuberance? Bitcoin maintains its position above $100,000 for the sixth consecutive day, allowing 80% of short-term holders to return to profit. This momentum is accompanied by an intensification of the FOMO (Fear of Missing Out) phenomenon, according to several market analysts. Bitcoin maintains $100,000 forLet's delve deeper into the factors at play and explore what this means for the future of Bitcoin. BTCUSD Bitcoin 80% of Bitcoin short-term holders back in profit as analyst says 'FOMO in full swing' While Bitcoin short-term holders' profit increased, panic selling was also evident aroundIs now really the time to jump in, or are we setting up for another correction?We'll explore these questions and more in this comprehensive analysis.

Understanding the Bitcoin Short-Term Holder Landscape

Before diving deeper into the current market dynamics, it's crucial to define what we mean by ""short-term holders"" (STH).In the context of Bitcoin on-chain analysis, STHs are typically defined as addresses that have held Bitcoin for less than 155 days. According to recent data, around 80% of Bitcoin investors who have held the cryptocurrency for a short period are now seeing profits. This news comes as a popular analyst suggests that Fear of Missing Out (FOMO) is currently driving the market. The rise in Bitcoin prices has brought many short-term holders back into positive territory, whichThis segment of the market is often more reactive to short-term price fluctuations and tends to exhibit higher trading activity compared to long-term holders, who are less likely to sell during dips.

The behavior of STHs can provide valuable insights into market sentiment. While Bitcoin short-term holders' profit increased, panic selling was also evident around $100,000 despite clear technical support above $95,000.When a large percentage of STHs are in profit, it suggests growing confidence and potentially further price appreciation. After a 10% price swing on Jan. 20, Bitcoin BTCUSD remains above $100,000 for the sixth consecutive day, with a value of $106,100 at the time of publishing. Data from Checkonchain, a Bitcoin onchain analysis program, indicated that 80% of short-term holders (STH) were back in the profit bracket after BTC s recovery above $100,000.Conversely, a high percentage of STHs in loss may indicate fear, uncertainty, and an increased likelihood of sell-offs.

Key Metrics for Analyzing Short-Term Holder Activity

  • Percent of STH in Profit: This metric indicates the proportion of STHs currently holding Bitcoin at a profit. Bitcoin Short-Term Holders Rejoice: 80% Now Back in Profit as FOMO Takes Hold. The Bitcoin landscape has undergone significant shifts in recent weeks, with short-term holders of the cryptocurrency breathing a sigh of relief as their profits continue to swell. According to recent data, a staggering 80% of Bitcoin short-term holders have alreadyA high percentage, like the current 80%, suggests bullish sentiment.
  • Short-Term Realized Price: The average price at which STHs acquired their Bitcoin.According to Checkonchain data, the short-term realized price is around $90,541.This means that any price above this level puts the average STH in profit.
  • Spent Output Profit Ratio (SOPR): This ratio compares the value of spent outputs (Bitcoin being moved) to the value of those outputs when they were originally received.An SOPR above 1 indicates that coins are being sold at a profit.Analysts have noted that the SOPR for STHs is currently turning, which could signal a potential shift in market dynamics.

The $100,000 Milestone and Bitcoin's Continued Momentum

Bitcoin's ability to consistently stay above the $100,000 mark has been a major catalyst in boosting short-term holder confidence.After a 10% price swing on January 20th, Bitcoin has maintained its position above this psychological threshold for six consecutive days, reaching a value of $106,100 at the time of writing.This stability has instilled a sense of security among STHs, encouraging them to hold onto their coins and potentially add to their positions.

The psychological importance of round numbers like $100,000 cannot be overstated.These levels often act as resistance or support, and breaking through them can trigger significant buying or selling pressure.In this case, the sustained break above $100,000 has signaled to many that Bitcoin is entering a new phase of growth.

The Role of Technical Analysis

While on-chain data provides valuable insights into STH behavior, technical analysis also plays a crucial role in understanding market trends.Technical analysts look at price charts, trading volume, and other indicators to identify patterns and predict future price movements.In the current market environment, many technical analysts are pointing to bullish signals, further reinforcing the positive sentiment.

The Rise of FOMO: Fear of Missing Out

As Bitcoin's price continues to climb and short-term holders reap the rewards, the Fear of Missing Out (FOMO) is intensifying. After a 10% price swing on Jan. 20, Bitcoin (BTC) price remains above $100,000 for the sixth consecutive day, with a value of $106,100 at the time of publishing. Data from Checkonchain, a Bitcoin onchain analysis program, indicated that 80% of short-term holders (STH) were back in the profit bracket after BTC s recovery above $100,000. [ ]FOMO is a powerful psychological phenomenon that can drive investment decisions, often leading individuals to buy assets at inflated prices out of fear that they will be left behind. Related: 80% of Bitcoin short-term holders back in profit as analyst says 'FOMO in full swing' Bitcoin also appeared to react positively to commentary from Bank of America CEO Brian Moynihan whoSeveral market analysts believe that FOMO is currently a significant factor in the Bitcoin market, contributing to the upward pressure on prices.

The media plays a significant role in amplifying FOMO. After a 10% price swing on Jan. 20, Bitcoin (BTC) price remains above $100,000 for the sixth consecutive day, with a value of $106,100 at the time of publishing. Data from Checkonchain, a Bitcoin onchain analysis program, indicated that 80% of short-term holders (STH) were back in the profit bracket after BTC s recovery above $100,000.As Bitcoin's price makes headlines, more people become aware of the potential gains, further fueling the desire to invest.Social media also contributes to the spread of FOMO, as individuals share their successes and encourage others to join the bandwagon.

Is FOMO a Sustainable Driver?

While FOMO can contribute to short-term price increases, it is generally not considered a sustainable driver of long-term growth.Prices driven by FOMO are often unsustainable and can be followed by sharp corrections as the initial excitement fades.It is important for investors to be aware of the risks associated with FOMO and to make informed decisions based on their own research and risk tolerance.

Panic Selling Amidst the Bull Run

Interestingly, despite the overwhelming positivity and the return of STHs to profit, panic selling has also been observed around the $100,000 mark.This suggests that some investors, even those currently in profit, remain wary of potential price corrections and are quick to take profits at key resistance levels.

The presence of panic selling highlights the inherent volatility of the Bitcoin market. 80% of Bitcoin short-term holders back in profit as analyst says 'FOMO in full swing' Coin Telegraph 17 minutes ago 5 While Bitcoin short-term holders profit increased, panic selling was also evident around $100,000 despite clear technical support above $95,000.Even during periods of strong upward momentum, uncertainty and fear can still drive investment decisions. Bitcoin's price is currently $101,099, according to CoinMarketCap, following a recovery that saw 80% of short-term holders return to profit. Earlier in the month, the supply of short-term holders in loss dropped to 65% before Bitcoin regained momentum above $100,000. The short-term realized price is $90,541, based on Checkonchain data.This underscores the importance of having a well-defined investment strategy and sticking to it, even during periods of market turbulence.

Why Panic Selling Can Be a Mistake

While taking profits is a legitimate strategy, panic selling can often be a mistake.By selling during periods of fear, investors may miss out on potential future gains. 80% of Bitcoin short-term holders back in profit as analyst says 'FOMO in full swing' After a 10% price swing on Jan. 20, Bitcoin price remains above $100,000 for the sixth consecutive day, with a value of $106,100 at the time of publishing.Data from Checkonchain, a Bitcoin onchain analysis program, indicated that 80% of short-term holders (STH) were back in the profit bracket after BTC sIt's crucial to understand the underlying reasons for price fluctuations and to avoid making impulsive decisions based on short-term market movements.

Analyzing Bitcoin's Long-Term Health

While the recent surge in short-term holder profitability is encouraging, it's important to consider the broader context of Bitcoin's long-term health. After a significant price swing on January 20, Bitcoin has held a value above $100,000, currently priced at $106,100. Data indicates that 80% of short-term holders have returned to profit as Bitcoin rebounded. However, analysts have noted that the spent output profit ratio for these holders is turningAccording to the BTC Percent Supply in Profit chart, more than 80% of all Bitcoin holders are currently in profit.This indicates a healthy and resilient market, with a large base of investors who are committed to holding Bitcoin for the long term.

However, one analyst, Adler, points out that in the past, when between 95% and 98% of holders were in profit, the market was overheating. While Bitcoin short-term holders profit increased, panic selling was also evident around $100,000 despite clear technical support above $95,000.This suggests that while the current level of profitability is positive, there is still room for growth before the market reaches a potentially unsustainable level.

Factors Contributing to Bitcoin's Long-Term Value

  • Scarcity: Bitcoin's limited supply of 21 million coins makes it a scarce asset, which can drive up its value over time.
  • Decentralization: Bitcoin is a decentralized cryptocurrency, meaning it is not controlled by any single entity.This makes it resistant to censorship and manipulation.
  • Growing Adoption: Bitcoin's adoption is growing rapidly, with more businesses and individuals accepting it as a form of payment.
  • Store of Value: Many investors see Bitcoin as a store of value, similar to gold. 80% of Bitcoin short-term holders back in profit as analyst says 'FOMO in full swing$BTC $XRP $ETHThis can help to protect their wealth against inflation and economic uncertainty.

Bitcoin vs Altcoins: Diverging Trends

While Bitcoin is experiencing a resurgence, it's important to note that the broader cryptocurrency market is diverse, and altcoins (alternative cryptocurrencies) may be exhibiting different trends.Some altcoins may be performing well, while others may be lagging behind.Investors should carefully research individual altcoins before investing in them.

Bitcoin's dominance in the cryptocurrency market means that its price movements often influence the prices of altcoins.However, altcoins can also be affected by their own specific factors, such as technological developments, partnerships, and regulatory changes.

Diversifying Your Cryptocurrency Portfolio

Diversification is a key principle of investing.By diversifying your cryptocurrency portfolio across different assets, you can reduce your overall risk.However, it's important to choose altcoins carefully, based on their fundamentals and long-term potential.

Navigating Bitcoin Volatility: Tips for Investors

Bitcoin is known for its volatility, and investors should be prepared for potential price swings.Here are some tips for navigating Bitcoin volatility:

  1. Do your research: Before investing in Bitcoin, take the time to understand its fundamentals, risks, and potential rewards.
  2. Set realistic expectations: Don't expect to get rich quick from Bitcoin.Be prepared for potential losses and invest only what you can afford to lose.
  3. Use a long-term perspective: Bitcoin is a long-term investment.Don't panic sell during short-term price dips.
  4. Manage your risk: Use stop-loss orders to limit your potential losses.
  5. Stay informed: Keep up to date on the latest Bitcoin news and developments.
  6. Consider dollar-cost averaging (DCA): DCA involves investing a fixed amount of money at regular intervals, regardless of the price.This can help to smooth out your returns and reduce your risk.

The Importance of Due Diligence

In the world of cryptocurrency, due diligence is paramount.Before investing in any cryptocurrency, it's crucial to conduct thorough research and understand the risks involved.Don't rely solely on hype or FOMO.Look at the underlying technology, the team behind the project, and the potential market for the cryptocurrency.

The Future of Bitcoin: What Lies Ahead?

Predicting the future of Bitcoin is impossible, but several factors suggest that it has the potential to continue growing in value over the long term.These factors include its scarcity, decentralization, growing adoption, and its role as a store of value.However, Bitcoin also faces challenges, such as regulatory uncertainty, competition from other cryptocurrencies, and the risk of technological obsolescence.

The evolution of blockchain technology will undoubtedly play a crucial role in Bitcoin's future.Innovations such as the Lightning Network, which aims to improve Bitcoin's transaction speed and scalability, could further enhance its utility and adoption.

Potential Scenarios for Bitcoin's Future

  • Continued Growth: Bitcoin continues to gain adoption and its price continues to rise, driven by increasing institutional investment and growing awareness of its potential as a store of value.
  • Increased Regulation: Governments around the world introduce stricter regulations on Bitcoin, which could impact its price and adoption.
  • Technological Disruption: A new cryptocurrency emerges that is superior to Bitcoin in terms of technology or functionality, leading to a decline in Bitcoin's dominance.
  • Market Correction: Bitcoin experiences a significant price correction, similar to previous market cycles, potentially driven by factors such as overvaluation or regulatory uncertainty.

Conclusion: Navigating the Current Bitcoin Landscape

The current Bitcoin market is characterized by a resurgence in short-term holder profitability, driven by a sustained price above $100,000 and fueled by FOMO (Fear of Missing Out).While this positive momentum is encouraging, it's important to remember that the Bitcoin market is inherently volatile and subject to sudden price swings.Investors should exercise caution, conduct thorough research, and avoid making impulsive decisions based on short-term market movements.Remember that 80% of short-term holders are currently enjoying profits, but past performance is never a guarantee of future returns.Whether you choose to participate or remain on the sidelines, understanding the dynamics of the Bitcoin market is crucial in today's rapidly evolving financial landscape.

Vitalik Buterin can be reached at [email protected].

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