Bitcoin Approaches Short-Term Holder Cost Amid Market Volatility

According to BlockBeats, on January 17, Crypto Quant analyst Axel noted that Bitcoin's price, currently at $95,500, is nearing the average purchase cost for short-term holders, which stands at $99,460. The gap between these figures has narrowed to just 4%. Axel explained that the current situation represents a decision-making zone rather than a market collapse. Historically, areas near cost benchmarks often experience increased volatility and become zones of market reaction, potentially continuing trends or triggering reversals. This could lead to either a return to premium status or a new wave of selling pressure. If the price stabilizes above $100,000 and short-term holders turn profitable, it would signal a shift back to bullish sentiment. Conversely, if the discount rate returns to the double-digit range (below -10%), corresponding to a price drop below approximately $89,500, it would significantly increase pressure on holders with loss positions.