Bitcoin Speculators Lose $100M As Bulls Eye $100K Amid Volatility

Bitcoin (BTC) speculators have suffered losses exceeding $100 Million in the past six weeks as short-term holders capitulated amid volatile market conditions.

Data from on-chain analytics platform CryptoQuant highlights the scale of panic selling, with many investors exiting at a loss.

Short-term Holders Exit Amid Market Drawdown

Entities holding Bitcoin for one to three months have endured the heaviest losses, with CryptoQuant estimating their realized losses at approximately $100 Million.

According to analyst Onchained, this cohort saw a reduction in their market capitalization below the realized capitalization, a sign that they are selling at a loss.

In a Cryptoquant Quicktake post, Onchained noted,

“This represents a reduction in the value of Bitcoin held by this cohort, who are now underwater as many bought at higher prices and are exiting with losses.”

A sharp decline in the realized cap for these investors suggests that a large number of coins have moved at a lower price than their initial purchase.

Historically, such selling pressure has contributed to short-term price drops, with Bitcoin’s current correction testing key support levels.

Bitcoin Price Faces Resistance as Options Expiry Nears

Meanwhile, Bitcoin options traders saw an expiry event on March 14. Experts have noted that the Bitcoin options market exhibits is looking somewhat bullish.

These contracts hold a notional value of $2.9 Billion, slightly surpassing last week’s expiry but significantly smaller than the $11 Billion event expected on March 28.

According to data from Deribit, call open interest data was concentrated at the $400,000 strike price, accounting for $1.4 Billion, while nearly $1.6 Billion sits at the $100,000 level.

Bears, however, have placed nearly $850 Million in bets on BTC dropping to $70,000, suggesting uncertainty about Bitcoin’s near-term direction.

Crypto derivatives provider Greeks Live noted that sentiment remains skewed toward bearish positioning, despite slightly positive inflation data in the U.S. According to him,

“Traders are watching key support levels and discussing a potential bottom for BTC, with some suggesting $60,000 as a possible downside target.”

Golden Cross Sparks Bullish Expectations

Despite short-term losses, some analysts remain optimistic about Bitcoin’s trajectory.

Merlijn The Trader pointed to a “golden cross” signal, which has historically preceded major bull runs for Bitcoin price.

According to an analysis by Merlijn the Trader,

“Every time this signal flashed: 2016: +139%, 2017: +2200%, 2020: +1190%… Now, it’s happening AGAIN in 2025.”

Additionally, Bitcoin price has printed a bullish RSI divergence on the daily chart, a pattern that previously led to gains of +23% and +96%.

This has fueled speculation that a recovery could be on the horizon.

Another analyst, Rekt Capital, noted that BTC has successfully retested a CME Gap level, forming a higher low, stating further,

“Promising early-stage signs of a Bullish Divergence developing. Reclaiming the previous lows of $84,000 could set price up for further upside.”

Market at Crossroads as Bulls and Bears Battle

Bitcoin’s price has struggled to recover from its recent 30% correction from its all-time high in mid-January.

While long-term investors continue accumulating at around $80,000, short-term holders remain uncertain.

CryptoQuant analysts warned that the current drawdown could signal a broader market shift. As per their report,

“Historically, bull market corrections tend to be short-lived and followed by strong recoveries, but current on-chain indicators point to a potential structural shift that could preclude a broader bearish phase.”

Bitcoin’s near-term outlook remains uncertain as speculators exit and options expiry looms.

While bullish signals emerge, selling pressure and macroeconomic factors could shape the next move.