Bitcoin has just undergone a sharp correction, falling below 80,000 USD for the first time since last November. But who is really selling during this period? According to data from CryptoQuant, the answer largely comes from short-term investors (Short-Term Holders - STHs), while long-term investors (Long-Term Holders - LTHs) tend to be more patient.

Short-term investors sell at a loss of billions of USD.

In the past 24 hours, short-term holders have transferred about 55,000 BTC (equivalent to 4.6 billion USD) to exchanges and accepted selling at a loss. Just a few days ago, this number was even higher:

  • 80,000 BTC were put on the exchange on Wednesday.

  • 65,000 BTC were sold on Thursday.

This is a clear sign of panic among new investors, who have held BTC for less than 155 days.

According to Markus Thielen, CEO of 10x Research, 70% of BTC sold comes from investors who bought at high prices in January 2025, especially after Donald Trump officially took office on January 20, 2025. These individuals bought at the peak and are now accepting losses to exit the market.

Long-term investors still hold, but have taken profits.

In contrast, long-term investors (#LTHs ) sell less and are still profiting. Since February 14, they have even increased their holdings by an additional 47,000 BTC. However, according to Ruslan Lienkha, a market expert at YouHodler, this group has quietly taken profits since mid-December 2024, creating selling pressure on Bitcoin and preventing the price from exceeding 110,000 USD.

This creates a loop:

  • Long-term holders gradually sell to take profits, creating a large supply.

  • Short-term holders are caught in the market at high prices, then panic sell when prices drop.

Reasons for the market's sharp decline

In addition to selling pressure from short-term holders, other factors also contributed to Bitcoin's sharp decline:

  • The Bybit exchange hack resulted in over $1.4 billion being stolen, causing panic in the market.

  • Tax policy pressures force some investors to sell to ensure liquidity.

According to #CryptoQuant , about 4.6 million BTC are currently in a state of loss. The Market Value to Realized Value (MVRV) ratio of short-term holders has dropped to 0.89 – the lowest in the past 6 months, indicating that most newcomers are suffering significant losses.

Sign of stabilization or further decline?

Another important indicator is the ratio of long-term holders to short-term holders, reflecting the balance between these two groups. This ratio has decreased from 1.5 in October 2024 to 0.90 on February 9, 2025 – the lowest in the past 3.5 years.

Despite the significant correction, this ratio remains at 0.92, indicating that volatility may still continue.

Conclusion

$BTC is in a market cleansing phase, where weak-handed investors accept selling at a loss, while long-term holders are still profiting. According to experts, if this trend continues, the market may have to undergo another correction before stabilizing.

The question is: Is this a buying opportunity or a sign of a stronger decline?

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