Based on the metric above, the current market conditions are estimated by considering the realized price of Bitcoin held by short-term holders (less than 155 days) and new entrants (less than 1 month). According to the metric, holders with Bitcoin for less than 6 months are collectively experiencing a loss of approximately 3%, while those holding for less than 1 month are facing a 6.6% loss at current prices.
Since the beginning of the 2023 bull market, Bitcoin has managed to recover from losses in the range of 10-11% for short-term holders and continue its prolonged upward trend. Consequently, the current loss is still smaller compared to previous corrections, suggesting that the short-term market conditions do not appear to be critically adverse.
Written by Crazzyblockk