Bitcoin News Today: Bitcoin Hovers Near Short-Term Holders' Cost Basis as Powell Speech Looms

Generated by AI AgentCoin World
Saturday, Aug 23, 2025 1:18 am ET1min read
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Aime RobotAime Summary

- Bitcoin fell to $112,000, aligning with short-term holders' average cost basis, per on-chain analyst Murphy.

- Market activity reflects anticipation of Fed Chair Powell's speech, with traders adjusting positions ahead of policy clues.

- Short-term holders' breakeven status creates psychological support, limiting downside risk as selling pressure remains contained.

- Sustained trading below $112,000 could trigger losses for active sentiment-driven investors, potentially amplifying near-term volatility.

Bitcoin recently fell to around $112,000, a level that corresponds closely with the average cost basis for investors who have held the cryptocurrency for less than three months, according to on-chain analyst Murphy [1]. The price movement appears to reflect market anticipation ahead of Federal Reserve Chair Jerome Powell’s upcoming speech, with traders adjusting positions in response to macroeconomic expectations.

Murphy highlighted that short-term

Bitcoin
holders represent a particularly active and sentiment-driven segment of the market. These investors tend to react quickly to price changes, and a sustained drop below their average cost basis can shift unrealized gains into losses, triggering psychological pressure and potentially influencing broader market behavior [1]. Given that many of these holders are currently near breakeven, their hesitancy to sell may serve as a temporary support mechanism, limiting the immediate downside risk.

This dynamic suggests that market participants are closely monitoring the psychological threshold of short-term holders, as a breakdown in their behavior could amplify volatility in the near term. The price action reflects a market in a holding pattern, with traders waiting for clarity from central bank officials before committing to larger positions. The lack of significant capitulation indicates that the selling pressure remains contained, at least for now.

As the market approaches Powell’s speech, which is expected to provide further guidance on monetary policy, Bitcoin’s ability to hold above $112,000 will be critical in determining whether short-term holders remain on the sidelines or are forced into the market. The coming days could provide clearer signals on the direction of risk appetite and investor sentiment in the cryptocurrency space.

Source: [1] On-Chain Analyst Murphy: Bitcoin Drops to $112,000 — Short-Term Holders’ Cost Basis Near Breakeven Ahead of Powell Speech (https://en.coinotag.com/breakingnews/on-chain-analyst-murphy-bitcoin-drops-to-112000-short-term-holders-cost-basis-near-breakeven-ahead-of-powell-speech/)