Bitcoin Speculators Lose Over $100M in Six Weeks Amid Panic Selling

Bitcoin speculators have collectively lost over $100 million in just six weeks due to panic-driven selling, according to new research from on-chain analytics firm CryptoQuant.

The data shows the extent of recent capitulation among short-term Bitcoin holders (STHs), particularly those who acquired BTC within the last one to three months.

Short-Term Holders Exit at a Loss

The latest analysis reveals that this group of investors suffered significant losses as Bitcoin’s price pulled back from its recent highs.

CryptoQuant estimates that this specific STH cohort is now approximately $100 million underwater, having bought BTC at higher prices and selling at a loss.

“This represents a significant reduction in the value of Bitcoin held by this cohort, who are now underwater as many bought at higher prices and are exiting with losses,” CryptoQuant contributor Onchained wrote in a March 13 Quicktake blog post.

The report examined the market cap and realized cap of these Bitcoin holders, comparing the current value of their holdings to the prices at which they last moved their BTC on-chain.

The findings indicate that market capitalization has dropped below realized capitalization, signaling that investors are locking in realized losses.

Market in an Oversold Zone After a Strong Correction

“Even without an additional sharp decline, the market has already been sufficiently lightened, making it a favorable zone for a potential upward move without the need for further significant drops.” – By @DanCoinInvestor pic.twitter.com/mjLOQWlj4U

— CryptoQuant.com (@cryptoquant_com) March 13, 2025

The trend has contributed to increased selling pressure, which could further impact Bitcoin’s price in the short term.

A CryptoQuant chart accompanying the report showed a sharp decline in realized cap, marking one of the steepest negative weekly shifts in months.

Additionally, the Net Unrealized Profit/Loss (NUPL) score for these investors has dropped to -0.19, meaning more BTC is currently being held at a loss than at any other time in the past year.

The latest downturn comes after Bitcoin’s 30% drop from its all-time high in mid-January, adding to the challenges faced by recent buyers.

Market corrections during bull runs often lead to panic-driven selling, with many short-term investors cutting losses prematurely.

However, large-volume holders appear unfazed by short-term price movements.

Instead, these entities are taking advantage of the market dip to accumulate more Bitcoin, particularly at price levels around $80,000.

Bitcoin Panic Selling Accelerates as Price Drops

Earlier this week, on-chain analytics firm Glassnode also reported that Bitcoin investors who bought at its all-time high of $109,000 in January are now panic-selling as prices decline.

The firm warned that continued selling pressure could push Bitcoin’s price down to $70,000.

Glassnode pointed out that short-term holders are “deeply underwater” between the $71,300 and $91,900 price levels, making $70,000 a possible bottom if the selling pressure continues.

“The probability of forming a temporary floor in this zone is meaningful, at least in the near term,” the firm added.