The latest market statistics show that Bitcoin has experienced an 8% decline, raising concerns among market observers about further downturns. Glassnode, a blockchain analytics platform, has identified several risk factors contributing to the decline, including weakening capital inflows, a key threshold for short-term holder cost basis, historical patterns, and mixed institutional flows in ETFs. The short-term holder market value to realized value ratio suggests that short-term holders currently hold an average of a 4% unrealized loss. If Bitcoin fails to regain its short-term holder cost basis, it may face continued selling pressure from recent purchasers. Historical trends indicate a potential downside expansion to a range between $71K and $72K, which is where the current -1σ is located. Market participants are closely watching for Bitcoin's recovery to its critical cost basis or a potential downward movement towards the $71K-$72K range.



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