On October 27, the short-term holder net profit metric swung from +10,400 BTC a week earlier to -18,600 BTC. It had even dipped to -23,100 BTC on October 26, making this a fairly sharp reversal.
The metric measures the net difference between coins in profit and coins at a loss when short-term holders transfer BTC to exchanges. A positive reading means more holders are selling at a profit; a negative reading means more are accepting losses and returning their coins to the market.
It has remained significantly negative for two consecutive days. One data source estimates that only a little over 10% of exchange inflows that day came from profitable positions, with most coming from positions at a loss. This kind of shift is usually interpreted as short-term investors coming under pressure, with sentiment leaning toward capitulation.
What may matter more from here is not this single reading of -18,600 BTC, but whether the metric stays deeply negative over the next few days or quickly returns to a more balanced range. That will determine whether short-term selling pressure is released all at once or stretches into a longer period.
The metric measures the net difference between coins in profit and coins at a loss when short-term holders transfer BTC to exchanges. A positive reading means more holders are selling at a profit; a negative reading means more are accepting losses and returning their coins to the market.
It has remained significantly negative for two consecutive days. One data source estimates that only a little over 10% of exchange inflows that day came from profitable positions, with most coming from positions at a loss. This kind of shift is usually interpreted as short-term investors coming under pressure, with sentiment leaning toward capitulation.
What may matter more from here is not this single reading of -18,600 BTC, but whether the metric stays deeply negative over the next few days or quickly returns to a more balanced range. That will determine whether short-term selling pressure is released all at once or stretches into a longer period.
