Short-Term Bitcoin Holders Experience Largest Loss Since FTX Collapse
Short-term holders (STHs) of Bitcoin currently hold approximately 2.8 million BTC at a loss, marking the largest underwater position since the FTX collapse in November 2022. STHs are defined as entities holding Bitcoin for less than 155 days. On June 15, exactly 155 days prior, Bitcoin price was about $104,000, indicating that most Bitcoin acquired since that date is now valued below purchase price due to the current market conditions.
Bitcoin's price is roughly 25% lower than its all-time high reached in October. Meanwhile, long-term holders (LTHs) have been distributing their coins, with their supply falling from 14,755,530 BTC in July to 14,302,998 BTC as of November 16, representing a decrease of 452,532 BTC.
U.S. spot Bitcoin ETFs currently manage about 1.33 million BTC as assets under management (AUM) as of November 16, down modestly from a peak of 1.38 million BTC on October 10, a 3.6% decrease. This decline is measured in BTC terms to avoid distortions caused by price volatility.
The divergence between ETF AUM and the Bitcoin price action indicates that the recent price decline is driven by longer-term holders rather than outflows from ETFs. The last time such a high level of losses was seen among short-term holders was during the FTX collapse when Bitcoin was trading near $15,000.
