Bitcoin Below Short-Term Holder Cost for 5 Months, Longest Undervaluation
Bitcoin has traded below its average market price and short-term holder cost basis for five months, analysts at Glassnode say, marking one of the longest periods of deep undervaluation in history. Long-term investor capitulation is also evident, with daily losses reaching about $280 million.
According to Glassnode analysts, bitcoin has been trading below both its average market price and the cost basis of short-term holders for five consecutive months – one of the longest stretches of deep undervaluation on record. The firm notes that long-term investors are capitulating, accounting for 43% of realized transaction volume, with daily losses of roughly $280 million. To confirm a trend reversal, bitcoin would need to close above $76,600.
Meanwhile, outflows from US spot bitcoin ETFs persist. On July 8, net withdrawals totaled $84.86 million. Trading volumes in the sector have dropped 80% from the peaks seen in fall 2023.
Source: ForkLog