Bitcoin is experiencing increased downside risk as the Short-Term Holder Spent Output Profit Ratio (STH SOPR) drops below 1, indicating weak risk appetite among investors. The STH SOPR reading of 0.98 suggests that short-term holders are realizing average losses, which could lead to panic selling. This development follows a failed attempt to rebound above $90,000, putting pressure on short-term holders. Market sentiment has turned negative, with more investors finding themselves in losing positions. Analyst Axel Adler highlights that the drop below the average buy price could trigger further selling, exacerbating the current market downturn.