Bitcoin Market Pain: Short-Term Holders Face Heavy Losses As Realized Profit/Loss Ratio Turns Negative

Ah, the sweet smell of Bitcoin volatility-like a fresh batch of burnt toast. Since the wild market shakeup caused by the US and China tariff nonsense (because, you know, we just love to complicate things), Bitcoin has been engaged in a desperate struggle for stability. After a brief upward movement on Sunday, it has once again lost the $110,000 target, much to the chagrin of hopeful investors.

Realized Losses Mount For Short-Term Bitcoin Investors

In a turn of events that no one saw coming (except, probably, anyone with a basic understanding of markets), Bitcoin’s price is heading south, dragging short-term investors with it. The Realized Profit/Loss (RPL) ratio for short-term holders has taken a nosedive, and it’s not pretty. Picture a financial car crash, except in slow motion, and with more spreadsheets.

Darkfost, an enthusiast on X (because, obviously, that’s where crypto wisdom lives), pointed out that short-term holders are bleeding out as they’re now selling their Bitcoin at a loss. It’s as if they were betting on a unicorn and then realized they were in the middle of a horse race with a three-legged horse. Ouch.

This mass capitulation is, of course, a classic sign that the weak hands are exiting the market. What does this mean for you, the patient, long-term Bitcoin enthusiast? Well, get ready for the inevitable ‘accumulation zones’ and long-term recovery, which will happen… eventually. Probably. At least that’s the theory. 🙄

At the time of this thrilling financial drama, Bitcoin’s price was around the $113,000 mark. If you’re one of those short-term holders, now would be a good time to grab a box of tissues.

In yet another shocking twist (because we needed more drama), the STH Realized P/L ratio dropped to -1.4, a level reminiscent of the April 2025 correction. It’s almost as if Bitcoin is staging a dramatic comeback in the form of ‘let’s see how low we can go’. But fear not! When short-term holders panic, the bottom forms. Or, at least, that’s the silver lining we keep telling ourselves. 🌚

Darkfost insists this trend is part of the “normal” cycle, which is just a fancy way of saying “this happens all the time, people.” And as long as there are occasional spikes of volatility, we can expect the usual upward trajectory to resume… at some point. I guess.

Long-Term BTC Holders Are Exiting The Market

As if the short-term holder’s woes weren’t enough, now the long-term holders are starting to exit stage left. According to Darkfost’s extensive observations (because who else could be this insightful?), long-term holders have been cashing out in October. Apparently, they too like to take a little vacation from their Bitcoin stash now and then.

The long-term holders have reduced their supply by 2.2%, meaning they’ve distributed over 330,000 BTC. While this isn’t exactly a massive sell-off (remember December 2024 when they were giving away nearly twice as much?), it’s still enough to make you wonder if they know something we don’t.

However, Darkfost has declared this trend an important one to watch. While Bitcoin’s price is plummeting, we’re seeing a rather unusual phenomenon: a surge in trading volume by over 55%. It’s as if everyone is panicking and buying at the same time. Classic market psychology, right?

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2025-11-03 18:59