Bitcoin (BTC) Price Prediction: Will the Market Revisit the All-Time High of $108K?

Since the beginning of the year, Bitcoin's price has been unable to revisit its $108,230 all-time high. This has reduced the profitability of the coin's short-term holders (STHs), putting more downward pressure on its price.

Bitcoin’s price has failed to revisit its record high of $108,230 since the beginning of the year. This has reduced the profitability of the coin’s short-term holders (those who have held their coins for less than 155 days), putting more downward pressure on its price.

As demand leans further, BTC’s price could see new declines. Here’s why.

Bitcoin short-term holders count their losses

In a recent report, pseudonymous CryptoQuant analyst Crazzyblockk noted a decline in the profitability of BTC investments for STHs.

The analyst assessed the profitability levels for all Bitcoin age bands and found that “following Bitcoin’s rally to the $108,000 level and the subsequent failure to reclaim this critical price point, the profitability margin for short-term holders has declined substantially.”

BeInCrypto’s analysis of the coin’s Spent Output Profit Ratio for its STHs also confirms the analyst’s claim. According to CryptoQuant, this has maintained a downward trend since January 2.

The Short-Term Holder Spent Output Profit Ratio (STH-SOPR) gauges the profitability of short-term holders of a particular crypto asset. It generally offers insights into whether investors who have held a particular asset for less than 155 days are in a profitable or虧損的位置。

When its value decreases, it means that short-term Bitcoin holders are selling at a loss rather than at a profit, reflecting declining market confidence among recent buyers, which suggests weaker demand for the flagship coin.

On how this may impact BTC’s price, Crazzyblockk noted:

“A drop in profitability for short-term holders often provides a clear signal of weakening market demand and bearish sentiment over the short and medium term. Therefore, under current conditions, this suggests an elevated likelihood of price corrections driven by reduced demand and subdued performance.”

BTC price prediction: Is a decline to $91,000 on the cards?

BTC’s price is currently hovering around the $100,943 level. If selling pressure intensifies due to short-term holders facing increasing losses, it could lead to a drop in the coin’s price to $91,488.

However, if sentiment shifts and BTC witnesses a resurgence in new demand, this may propel the Bitcoin price past the $100,000 level and toward its all-time high of $108,230.