Bitcoin holders are currently experiencing a significant downturn, marking their first 30-day stretch of realized losses since late 2023. This shift in the market comes as the Bitcoin 30-day realized profit and loss metric has fallen below zero, indicating that many are now selling their assets at a loss.
Data from CryptoQuant reveals an increasing number of holders are parting with their Bitcoin holdings below their initial purchase prices. This trend highlights a drastic change in market sentiment, moving away from the profitable sales that characterized the previous two years.
According to Julio Moreno, head of research at CryptoQuant, the recent dip in the profit and loss metric signifies a worrying trend. “Bitcoin holders are realizing losses for the first time in a 30-day period since late December 2023,” he noted on social media platform X. This negative metric shows that a greater number of holders are now selling at a deficit rather than profiting from their investments.
The current market pressure has underscored a broader decline in demand for Bitcoin. With many investors who bought at higher prices now facing the reality of offloading their coins at losses, the overall sentiment surrounding the cryptocurrency appears to be shifting towards caution.
In addition to individual trading patterns, the broader economic landscape is contributing to this downturn. Geopolitical tensions and evolving investor sentiment are prompting many digital asset holders to adopt a more conservative stance. As Bitcoin struggles, traditional safe-haven assets like gold have seen a surge in interest.
Further compounding the issue, Bitcoin exchange-traded funds (ETFs) have also reported significant net outflows. On a recent Monday, US-listed Bitcoin ETFs experienced $394.7 million in net outflows, reversing a streak of four consecutive days of inflows. This decline follows a period where these funds attracted over $1.8 billion.
This reversal in ETF interest coincides with increased trade tensions, notably due to comments from US President Donald Trump regarding tariffs. Financial executives, such as Farzam Ehsani, CEO of Valr, have pointed out that the current climate has pushed investors back into a “full de-risking mode,” further impacting Bitcoin“s market performance.
As the market continues to navigate through these volatile conditions, the future trajectory of Bitcoin and its holders remains uncertain. Investors are now faced with the challenge of adapting their strategies to cope with the shifting dynamics influenced by both market pressures and geopolitical events.
