Ilan Solot, co-head of digital assets at Marex Solutions, said unrealized losses for short-term holders is one of the key issues facing the market right now.
Almost 90% of short-term holders (< 155 days) are suffering unrealized losses, often associated with selling pressure.
Recently, optimism over the approval of a spot bitcoinETF in the U.S. has turned to the possibility that the approval remains good, but will be delayed, due to rising bond yields and tighter liquidity conditions, he explained.
According to data tracked by Glassnode, following the sell-off, 88.3% of the supply was controlled by short-term holders or entities with wallets held for less than 155 days, and is currently in an unprofitable state with unrealized losses.
In other words, of the 2.56 million BTC ($66.5 billion) held by short-term holders, about 2.26 million BTC were acquired at a cost above the prevailing market price.