Analyst Murphy Calls Bitcoin Pullback a 'Disastrous Start' as New Investor Loss Share Hits 73%

The share of newer Bitcoin investors at a loss has risen to 73%, according to the short-term holder profit/loss indicator (STH-PSIL). According to Odaily, analyst Murphy said Bitcoin may not have seen such extreme market conditions in the past 12 years. During the previous bear market, the indicator stood at 51% during the first pullback and rose to 67% during the second, amid interest-rate increases and failures at traditional banks. Murphy said the current market’s opening has some similarities to 2019-2020, when the first Bitcoin pullback pushed STH-PSIL to 97% as the global pandemic spread. He said the current market has not faced a comparable major external shock, though he sees signs of “human intervention.” Murphy said there was no need for excessive pessimism and that he remained confident in Bitcoin’s short- to medium-term outlook, with no plans to sell his holdings. He added that the decline had significantly damaged investor confidence, which may take a long time to recover. He said investors holding coins bought at higher prices could create sustained selling pressure during future rebounds, as in 2019, and that the market may take a long time to emerge from its downturn.