Bitcoin Short-Term Holders Drop Below 50% Profitability
On-chain analytics firm Glassnode identifies a key market turning point: demand-side risk appetite remains suppressed until short-term holder profitability crosses back above 50%.
Key Takeaway
Bitcoin needs short-term holders back above 50% profit before any real rally can stick.
Fewer than half of Bitcoin short-term holders are currently sitting on profits, according to on-chain analytics firm Glassnode.
The Supply in Profit metric for addresses that purchased tokens within the past 155 days fell under the 50% threshold following Bitcoin's bearish shift in Q4 2025. Glassnode said demand-side risk appetite tends to remain suppressed until this flips back above that level, calling the 50% mark a precondition for any sustained recovery.
Short-term holders represent the weaker side of the market compared to long-term holders who typically have diamond hands through volatility. The cohort's profitability has become a key indicator for market sentiment and potential price direction.
Bitcoin attempted to break through ₱4,283,431 ($72,000) following a 3% surge over the last 24 hours. That move hasn't been enough to push short-term holder profitability back above the critical threshold. Earlier in 2025, the metric flipped above 50% during the first half of the year, which led to Bitcoin rallying to new all-time highs.
Glassnode emphasized that historical patterns show sustained rallies rarely materialize while short-term holders remain underwater on their positions, with the metric tracking the percentage of Bitcoin supply held at a net unrealized gain for the cohort that purchased within the past 155 days.
This article was written based on reporting from NewsBTC.
