80% of Short-Term Bitcoin Holders Are Back in Profit as FOMO Is In Full Swing

Bitcoin remained above $100,000 for six consecutive days, reaching $106,100 on January 20. According to data from Checkonchain , 80% of short-term holders were profitable as BTC recovered, after the group’s supply loss dropped to 65% earlier in the month.

Short-term Bitcoin holders' profits help reduce the risk of a sell-off, but according to CryptoQuant analyst Darkfost , the negative STH-SOPR ratio suggests they are starting to sell BTC at a loss.

Short-term Bitcoin ( STH ) holders have experienced losses lasting into 2024, but unrealized value remains if they don't sell. Despite the gains in STH over the past week, some signs of panic selling have emerged.

Analyst Darkfost sounded a bullish note, while Axel Adler Jr. noted that the increase in volatility is driving price action on both the buy and sell sides.

As observed, the Volatility Composite Index, a metric that measures BTC price changes relative to market activity, has hit a one-month high. With Bitcoin hitting a new record high in the past 24 hours, Adler implied that “ FOMO is in full swing .”