BTC Short-Term Holders Finally See Green After Weeks of Selling at a Loss

Bitcoin's impatient investors just caught a break.

After weeks of watching their positions bleed red, the cohort known as 'short-term holders'—those who bought within the last 155 days—are finally back in the black. The relentless selling pressure from this group, which often acts as a market sentiment barometer, has flipped from panic-driven loss-taking to potential profit-realization. It's a subtle but critical shift in on-chain psychology.

The Fear Has (Temporarily) Left the Building

This isn't just about paper gains. The data suggests a fundamental change in behavior. For weeks, the chain was littered with transactions executed below cost basis—a clear sign of capitulation. That noise has quieted. Now, with the price stabilizing above their average acquisition cost, these holders face a new dilemma: hold for more, or cash out while ahead? Their next move will either fuel the next leg up or reaffirm Bitcoin's reputation as the asset that turns diamond hands into profit-taking paper hands faster than a Wall Street analyst revises a price target.

A Fragile Foundation for the Next Rally

Don't mistake a respite for a reversal. While the selling-at-a-loss spree has paused, it hasn't been erased. The realized price for these short-term speculators now acts as a tentative support floor. A dip below it could trigger a fresh wave of defensive selling. For the bullish case to solidify, Bitcoin needs to build and hold above this level, transforming former weak hands into a foundation of conviction. Until then, the market remains on a tightrope, balancing between relief and renewed anxiety.

One cynical finance jab: It's the ultimate cycle—fear, regret, relief, greed, and back again, all while the long-term holders quietly accumulate, watching the frenzy with the detached amusement of a parent at a toddler's birthday party.

Bitcoin short-term holders realize some profits after weeks of losses

CryptoQuant defines short-term holders as investors who have held the asset for less than 155 days. The category typically includes traders who buy and sell bitcoin to benefit from short-term price fluctuations.

These holders credit their profit-taking to Bitcoin’s recent surge, which has provided sufficient liquidity to allow them to cash out. According to data from crypto data aggregator CoinMarketCap, Bitcoin has surged by 6% over the last 4 days and by 5.6% over the last 7 days. 

The crypto asset began the year on a more positive note after recovering from the weakness witnessed as 2025 came to a close. Bitcoin is up about 10% since January 1 and is currently trading at $95,349. 

CryptoQuant founder Ki Young Ju wrote on X that retail traders are leaving Bitcoin markets, but whales are buying. The executive pointed to onchain data showing that spot and futures average order sizes are indicative of increased whale activity.

Data from Sosovalue shows that institutional investors are buying Bitcoin. Spot Bitcoin ETFs have recorded inflows worth $100.18 million on January 15, marking a four-day streak of positive flows. Since January 12, the funds have logged $1.8 billion in inflows after a four-day streak of negative flows that drained $1.3 billion from the firms. 

According to a previous report by Cryptopolitan dated January 15, Bitcoin and ethereum are leading the first major rally in 2026. Bitcoin reached a high of over $97,000 while Ethereum edged close to $3,400 on Wednesday. These crypto assets last traded at these prices towards the end of last year, prompting analysts to predict that the recent rally is part of a larger bullish trend.

Recent BTC rally triggers massive liquidation

The crypto market’s rebound triggered massive liquidations and significantly rekt short sellers. Cryptopolitan reported that $375 million in BTC positions alone got liquidated in less than 24 hours. The report also noted that $1 billion in short positions WOULD be liquidated once Bitcoin surpassed $97,100. The data showed that the majority of liquidations occurred on Binance, OKX, and Bybit, with Bybit accounting for the most at BTC’s price of $96,202.

The U.S. Consumer Price Index (CPI) report released on Tuesday indicated that inflation is cooling. The data boosted expectations of additional Fed rate cuts later this year. Core CPI is down to 2.6% from 2.7%, and the monthly CPI for both headline and core is at 0.3%. The data has historically been positive for risk assets like cryptocurrencies and could be a key catalyst for the ongoing rally. 

Wells Fargo’s Head of Macro Strategy, Michael Schumacher, said in an interview that the CORE view at Wells Fargo is that the Fed will cut interest rates a few more times this year. However, he said that the likelihood of the cut beginning this month is low.

According to the analyst, the market sees a 5% chance of an imminent rate cut this month. He also added that global markets are experiencing declining volatility, which is boosting investor confidence in riskier asset classes, such as cryptocurrencies.

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