Bitcoin Surges; Short-Term Traders React Swiftly

Short-Term Traders Transition from Loss to Profit

According to CryptoQuant data, the Short-Term Holder Profit and Loss to Exchanges metric has risen above zero once again. This indicates that investors who bought Bitcoin within the last 155 days are now selling on exchanges at a profit. In recent weeks, this group predominantly engaged in loss-making sales; however, the recent upward price breakout reversed the scenario.

Short-term investors are known for their rapid response to price fluctuations. For this group, typically engaged in short-term trades, the shift above neutral levels also offers psychological relief. CoinMarketCap data shows Bitcoin gained 6% over the last four days and 5.6% over the past week. Since the beginning of the year, it has risen approximately 10%. This performance presents appealing selling conditions for previously “in loss” investors.

Rising Liquidity and ETF Inflows Bolster Market

The increase in Bitcoin’s price has noticeably boosted market liquidity. After surpassing 97,000 dollars this week, Bitcoin stabilized around the 95,000-dollar range at the time of writing, allowing investors to close positions without significant price movements.

Simultaneously, spot Bitcoin ETFs are offering strong support to the market. Sosovalue data reveals over 100 million dollars of net inflows into spot Bitcoin ETFs on January 15th, marking four consecutive days of positive flow. Since January 12th, total inflows reached 1.8 billion dollars following a previous outflow of 1.3 billion dollars from ETFs.

CryptoQuant founder Ki Young Ju notes that while individual investors remain in the background, major players have become more active. The average order sizes in spot and futures markets suggest that the recent buying pressure mainly originates from “whales.”

Additionally, recent news of major U.S. banks planning to expand crypto custody services was well-received by the market. Increased institutional interest emerges as another factor supporting Bitcoin’s medium-term outlook.

The transition to profitability for short-term Bitcoin investors marks an important milestone in market psychology. Historically, such periods also lay the groundwork for increased profit-taking and heightened volatility. Though ETF inflows and whale purchases support the rally, potential selling pressure in the 95–97 thousand dollar range might cause short-term fluctuations. Therefore, cautious optimism appears to be the most balanced approach for investors at this stage.