The Bitcoin investor is in distress

Glassnode, an analytical company, stated that 97.5% of short-term Bitcoin investors are currently at a loss, causing a sense of panic to shroud the cryptocurrency market.

According to Coin Telegraph, the recent decline in Bitcoin (BTC) prices has tested the determination of investors. In fact, not many people have confidence in Bitcoin at this stage. In the cryptocurrency market, there is a term known as STH, referring to individuals who hold tokens for the short term, typically less than 155 days. As of September 17th, a staggering 97.5% of these short-term Bitcoin investors are in a state of loss.

According to Glassnode, there were sudden shifts in the mindset of cryptocurrency investors when the price of Bitcoin dropped from $29,000 to $26,000 in mid-August, leading to a selling frenzy.

Week On-Chain also predicts that the indices indicate a forthcoming level of panic and negative sentiment. According to data from Alternative on September 12th, the extreme sentiment in the market dropped to 30 points before returning to a neutral zone with a score of 47. Subsequently, it continued to hover in the fear zone with a score of 44 on September 24th.

These findings reflect the general caution among Bitcoin investors. Many believe that a further and more significant price decline will continue to occur in the near future. However, there are still debates in the market, with some optimistic individuals believing that Bitcoin’s fortune will come in the early Q4 of 2023. Coin Telegraph cites Fear and Greed Index numbers, indicating that the fear among cryptocurrency holders is higher than the market’s price volatility.

Another statistic from Glassnode shows that in 2023, there is still new money entering the market, but the amount is too low compared to the funds being withdrawn. This demonstrates market instability, legal pressures, and the tightening liquidity casting a shadow on the sentiment of cryptocurrency investors.