Bitcoin has showcased a remarkable performance thus far in 2025, kicking off the year with a surge to a new all-time high. However, the flagship cryptocurrency saw over 15% of its value eradicated by the end of the first quarter.
Although the BTC price seems to be stabilizing within a consolidation range, the outlook isn’t particularly bright for the world’s largest cryptocurrency. This situation has resulted in growing frustration among numerous short-term investors, leading many to exit the market.
Will Bitcoin Experience a Rise Soon?
In a recent update on the X platform, an on-chain analyst using the name Darkfost disclosed that a specific group of Bitcoin holders has been liquidating their assets at a loss. The analyst noted that these sell-offs are occurring at a pace reminiscent of the FTX collapse.
This observation is based on a marked decline in the Profit/Loss Margin, a metric that assesses the profitability of investors by comparing their acquisition price to the current market price of the cryptocurrency. It offers insights into whether investors are experiencing unrealized profits or losses.
Darkfost’s analysis particularly targets Bitcoin investors who have held BTC for one to three months (termed as short-term holders). These traders are viewed as the most reactive among holders, as evidenced by their current trading behavior.
Source: @Darkfost_Coc on X
According to Darkfost, short-term holders of BTC have been selling their coins at a loss since early February. The actualized losses have now reached levels not seen since the FTX crash, surpassing even those recorded during the price correction of 2024.
Historically, significant loss realization among Bitcoin’s short-term holders has often anticipated considerable upward price movements, especially when long-term holders continue to accumulate assets. The continuation of this trend suggests that long-term investors will acquire coins from weaker hands before the next bullish surge.
BTC Price Overview
At the time of this writing, BTC is priced at approximately $83,700, showing no notable changes over the past 24 hours. Based on CoinGecko data, the market leader has experienced a 1% increase over the last week.
The price of Bitcoin is consolidating around the $84,000 mark on the daily chart | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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