Bitcoin’s 2025 price journey has proven to be a rollercoaster, characterized by thrilling highs and disheartening lows. Amidst this tumultuous backdrop, a notable group of investors—short-term holders—has emerged, significantly shaping the year’s profit landscape. Defined as addresses holding Bitcoin for a mere one to three months, short-term holders have largely profited throughout the year, riding the wave of Bitcoin’s fluctuating fortunes.
Recent on-chain data sheds light on the effectiveness of short-term investing strategies within the crypto space. This data reveals that short-term holders remained in the green for approximately two-thirds of 2025, specifically for around 230 trading days out of the year.
Short-Term Holders Spent Most Of 2025 In Profit
According to insights from CryptoQuant, the analytics platform dedicated to cryptocurrency metrics, short-term Bitcoin holders enjoyed substantial profitability during the initial half of 2025. During this period, Bitcoin’s price often traded above the average realized price for these holders, granting new investors an opportunity to secure their gains, even amid significant volatility.
This trend became especially pronounced during mid-2025 rallies. Bitcoin escalated to and beyond the $100,000 mark, allowing short-term investors to maximize their profit margins. Remarkably, in January, Bitcoin consistently maintained a position above the short-term cost basis for nearly two months, marking an extended window of profitability for these holders.
A more pronounced phase of profits unfolded between May and October 2025. During this window, short-term holders reported significant unrealized gains, which surged as high as 20% in July, coinciding with Bitcoin’s initial breakout above $115,000. During this period, Spot Bitcoin ETFs also saw extensive institutional inflows, effectively mitigating any profit-taking activities among short-term investors.
Current Picture Shows Short-Term Holders Underwater
However, the landscape began shifting dramatically in recent weeks. Currently, Bitcoin trades in the low $90,000 range, falling below the short-term holder realized price, which hovers just above $100,000. This unfortunate scenario has led to a profit/loss margin reflecting a loss of about 10%. It is worth noting that this margin recently dipped to a staggering negative 20% when Bitcoin prices slid below $85,000 in November, marking the most challenging period for short-term holders in 2025.
Despite the strong performances earlier in the year, short-term holders now face an uphill battle. The data suggests that while the first three quarters of 2025 were generally favorable, the outlook has soured considerably. Historically, deep loss pockets tend to manifest in the final stages of a market correction, rather than early on.
For short-term holders, the immediate focus must be on regaining the short-term realized price and pushing back above the $100,000 threshold. Until that pivotal moment occurs, these investors will remain under pressure, even as the yearly statistics once seemed to favor their strategy.
Featured image from Unsplash, chart from TradingView
