Bitcoin Bloodbath: Short-Term Holders Bleed as Profit/Loss Ratio Plunges Into Negative Territory

Bitcoin's recent correction hits short-term speculators where it hurts most—their portfolios.

The Pain Meter Spikes

Realized profit/loss ratios turn negative for the first time in months, signaling widespread capitulation among recent buyers. These traders now face the classic crypto dilemma: hold through the storm or cut losses and run.

Market Mechanics Exposed

When short-term holders dominate selling pressure, volatility amplifies. The data reveals these investors are currently absorbing the brunt of market turbulence—a familiar pattern that separates tourists from true believers.

Another day, another lesson in crypto's favorite mantra: only invest what you can afford to lose. Though Wall Street analysts would probably call this 'portfolio rebalancing' while charging 2% management fees.

Key Takeaways

• Palantir is scheduled to report earnings after the closing bell Monday, with Wall Street analysts expecting record revenues.
• Options pricing suggests traders expect Palantir's stock could move nearly 10% in either direction after its results.

AI investor favorite Palantir is set to report its latest quarterly results after the closing bell today, with traders expecting a big MOVE in the data analytics software maker's stock that could take it to new highs.

Options pricing suggests traders expect Palantir Technologies (PLTR) shares could move nearly 10% in either direction by the end of this week. A move of that size from Friday's close just above $200 WOULD push shares to a new all-time high near $220 at the high end—or pull them down to about $182, where they were last month.

Palantir's stock took a big hit in August in the wake of a short-seller's report that added fuel to worries it could be overvalued. It's more than recovered since, lifted by Optimism about a series of new deals and partnerships.

Why This Matters for Investors

Some on Wall Street worry that Palantir's stock may have already climbed too high, too fast relative to its fundamentals. A strong showing in tonight's earnings report would be a feather in the hat of bulls who believe its AI growth potential is being underestimated.

Wall Street analysts surveyed by Visible Alpha see Palantir reporting third-quarter earnings per share of $0.17 on a 50% year-over-year jump in revenue to a record $1.09 billion, thanks to growing demand for the software maker's Artificial Intelligence Platform. 

A majority of analysts, however, hold neutral ratings for the stock amid persistent concerns that Palantir's torrid rally this year could leave it due for a pullback. The stock is up about 165% for 2025, making it one of the best-performing stocks in the S&P 500.

Its most ardent supporters, however, are unfazed. Analysts at Wedbush, led by longtime bull Dan Ives, boosted their target for the stock to $230 ahead of today's report, saying they expect Palantir's market capitalization to reach $1 trillion dollars—more than twice recent levels—in the next two years.

Shares of Palantir were recently up more than 1%. Read Investopedia's full daily markets coverage here.

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