The price of Bitcoin dropped notably over the last few days, falling below the average cost basis of short-term holders.Bitcoin’s price fell significantly over the last few days and slipped past the average cost basis of short-term holdersrecent dip below the $60,000-mark sent shockwaves across the crypto-sector, leading to extreme uncertainty in the market and massive liquidations.
When this happens, the most immediate consequence is unrealized losses for short-term holders. Since their average purchase price is higher than the current price, they will technically lose money on their investment if they sell. This can lead to panic selling and further exacerbate the market decline.
However, for optimistic short-term holders with a strong belief in Bitcoin’s long-term potential, this price drop can also be seen as a buying opportunity. They can average down their cost basis by purchasing more Bitcoin at a lower price.It remains to be seen how these short-term holders will be affected by the decline in BTC’s price.Another factor that can influence BTC’s price and the selling pressure on the king coin, would be the state of miners.
AMBCrypto’s analysis of Santiment’s data revealed that the activity on the network has remained the same over the last few days – A positive for BTC in the long run.Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.Subscribe to get it daily in your inbox.
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