Recent on-chain data reveals that Bitcoin short-term holders (STHs) have sold approximately 14,700 BTC at a loss amid heightened market volatility linked to tensions in the Middle East.
Axel Adler Jr, a CryptoQuant analyst, highlighted on X that these investors—who have held BTC for less than 155 days—are reacting to price fluctuations following U.S. strikes on Iranian nuclear facilities. STHs typically include newer or less committed investors who are more prone to panic selling, contrasting with long-term holders (LTHs) who generally maintain their positions through market swings.
Exchange inflows serve as an indicator of selling pressure since investors often transfer coins to centralized platforms to execute sales. Data shows that loss-related inflows from STHs stand at 14,700 BTC, a significant figure though below previous major capitulation events in recent months. In comparison, profitable transfers from this group are much lower, totaling around 3,100 BTC.
Glassnode’s analysis supports this, noting that the tight profit margins for STHs result from the recent price decline. Their average acquisition cost level, measured by the STH Realized Price indicator, remains close to current prices, limiting potential gains.
Bitcoin was trading near $101,300 at the time of reporting, down over 5% in the past week, reflecting ongoing market uncertainty.