Analyst: The overall loss ratio of short-term Bitcoin holders has risen to 73%, and the trapped positions may continue to suppress the rebound

Cryptocurrency analyst Murphy stated that the current Bitcoin pullback has pushed the short-term holder's loss ratio (STH-PSIL) to 73%. In comparison, during the last round of rate hikes and the traditional banking crisis, this metric was at 51% during the first pullback and rose to 67% in the second.

Murphy referred to the current trend as a "bottomless pit start," believing it resembles the market conditions from 2019 to 2020. During the first pullback in 2019, this metric once rose to 97%, and it took the market about a year to recover from the slump.

Murphy believes there is no need to be overly pessimistic at this time, but investor confidence has been damaged. A large number of trapped positions above may continue to create selling pressure when prices rebound to key levels, making this round of recovery potentially more difficult than in 2019. He mentioned that he heavily bought BTC from February to June, and although the current price is close to his cost basis, he has no plans to sell.