Bitcoin Plunges Below $90K as Short-Term Holders Flee

Bitcoin's price experienced a significant dip on Feb. 25, falling below $90,000 and reaching a three-month low. This decline was accompanied by a mass exodus of short-term holders, who offloaded their holdings amid bearish market sentiment. According to data from CryptoQuant, the Short-Term Holder Spent Output Profit Ratio (SOPR) fell below 1, indicating that these investors were selling at a loss.

During this period, short-term holders moved approximately 80,000 BTC to exchanges, translating to over $7 billion in value. The surge in sell orders added pressure to Bitcoin's price, exacerbating the market downturn. On-chain data shows that roughly $1.7 billion of this amount were realized losses, marking the most significant investor capitulation since August 2024.

This event highlights the volatility and risk associated with short-term Bitcoin trading. As the market continues to evolve, investors must remain vigilant and adapt their strategies to navigate the ever-changing landscape. Despite the recent dip, Bitcoin remains a popular and influential asset in the cryptocurrency market.