The level of profits and losses held by STHs is currently in a typical bear market configuration.

Today, the estimated STH cost basis stands at around $83,800.

This means STHs are still holding and realizing losses on average, estimated at ~6.5%.

That figure dropped to more than 34% in early February at the peak of the correction.

In terms of duration, STHs have now remained underwater for more than 6 months.

If we compare this with the previous bear market, that dynamic lasted for nearly 13 months and reached a peak of ~42% losses.

That peak was reached after just over 6 months of bear market conditions.

Despite the narratives around the current cycle, the present setup still closely resembles the previous bear market, which was impacted by major events such as FTX and TerraLuna, preventing STHs from returning to profitability.

We are currently approaching a pivot point, where the market can either move back into a more comfortable zone for STHs and investors overall, or extend its correction and continue testing investor conviction.

Written by Darkfost