Bitcoin drops to $83K and faces increased downward pressure in the ‘air gap zone’
Bitcoin’s price (BTC), which had fallen by 6.5% in the past 24 hour, has now dropped to $83,223.04.
According to Glassnode’s recent report, BTC trades between $70,000-$88,000. It also said that the lack demand increased the risk for further downward movement.
The report attributed the downward pressure to the market-wide sale and the impact of Bybit’s hack. The Cost Basis Distribution heatmap (CBD), reveals that the realized supply has been reduced by between $70,000 to $88,000 due to rapid price appreciation.
Investor stress and market weakness
Long-term Bitcoin holders began to distribute their supply as Bitcoin reached new highs. This weakened the momentum. Bybit’s hack and the subsequent decline in the market have pushed Bitcoin back into low-liquidity territory.
As indicated by the STH-MVRV ratio of 0,95, the pressure on investors has increased as Bitcoin’s fall to the $83,000 area. This metric indicates that, on average recent buyers hold positions at a loss relative to their original cost basis of about 5%.
The adjusted STH MVRV shows that it has declined by 15.8% from its quarterly median. This is above the threshold of one standard deviation (-11%). Historically, this level has preceded events such as forced liquidations or capitulations, where unrealized loss forces investors to sell their stocks at lower prices.
To assess the new investor’s sentiment, the report turned to a ratio called Short-Term Holder Spent Output profit Ratio (STH SOPR). This ratio determines whether recent buyers have sold at a loss or profit.
The STH SOPR is down by -0.04 compared to its quarterly median. This is significantly lower than the threshold of one standard deviation (-0.01). This is due in part to a higher loss realization rate, as many short-term investors are now exiting positions with a loss.
As weaker operators exited the market, SOPRs contracted sharply. However, current macroeconomic conditions suggest further declines could occur unless a strong demand is generated.
Bybit hack
The Bybit hack triggered a wider downturn as the market volatility increased. The decline in liquidity, coupled with a weakening demand for spot products, contributed to the selling pressure that led to a prolonged market correction.
Bitcoin’s momentum for the month of December has dropped by -13.6%. Other major cryptos have seen even greater declines. Ethereum is down by 22.9%. Solana dropped 40%. And the Meme Coin Index collapsed by 36.9%. These figures highlight the prevailing sentiment of risk-off in the market.
This sharp decline has reversed months’ upward momentum in the price of Bitcoin, bringing it back to levels seen last briefly in November 2024.
The report stated that the demand catalysts and the liquidity conditions will determine whether the market recovers or continues to face downside risks as it seeks stability.
Bitcoin Market Data
The time of the press The date is February 26th, 2025 at 10:30 UTC.Bitcoin is the #1 market cap cryptocurrency and its price is You can find out more about it by clicking here. 4.96% Over the past 24 hour. Bitcoin has a capitalization of $1.68 trillion With a daily trading volume of $63.42 billion. Learn more about Bitcoin ›
Bitcoin
On February 26, 2025, 10:30 PM UTC
$84,526.09
-4.96% Crypto Market Overview
The time of the press On February 26, 2025, 10:30 PM UTC. The total crypto market is worth at 2 822 trillion dollars A 24-hour volume is $149.59 Billion. Bitcoin dominates the world at this time. 59.50%. Learn more about the crypto market ›
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