Bitcoin's (BTC) recent drop below the $60,000 level has sent shockwaves through the cryptocurrency industry, leading to extreme uncertainty and massive liquidations in the market. Before rebounding a day later, Bitcoin closed at $57,700, just below short-term holders' average cost basis of $58,500.

Panic Selling in BTC

The stated situation could mean that the BTC price has fallen below the average purchase cost for short-term holders. When this happens, the most immediate consequence for short-term holders is unrealized losses. Since their average purchase price is higher than the current price, they could technically lose money on their investment if they sell. This could lead to panic selling and further exacerbate the market decline.

However, for short-term optimistic investors who have a strong belief in Bitcoin's long-term potential, this price drop can also be seen as a buying opportunity. They can average out their cost basis by purchasing more Bitcoin at a lower price. Time will tell how these short-term holders will be affected by the decline in #BTC price. Another factor that may affect the selling pressure on BTC's price may be the situation of miners.

Santiment Report on Bitcoin

Last month, the revenue collected by miners decreased significantly. If miners continue to see this trend, they may be forced to sell their BTC tokens to remain profitable. This situation may increase the selling pressure on miners and negatively affect BTC in the long term. Bitcoin's total hashrate also dropped significantly. For miners who remain active, a lower hashrate could mean less competition. This could mean easier block discovery and potentially higher profits, especially if the Bitcoin price remains the same.

Only time will tell whether Bitcoin miners can remain profitable in the future. Finally, a factor that will play a big role in helping miners survive will be the overall activity on the Bitcoin network. This is because miners can receive transaction fees for the activity. Cryptocurrency analytics company Santiment's analysis of data found that activity on the network has remained the same over the past few days. This is a positive development for BTC in the long term.