Panic Selling? Short-term Bitcoin Holders Offloaded $36.6 Billion in BTC

As a seasoned analyst with over two decades of experience in financial markets, I have witnessed numerous trends and cycles that shape the investment landscape. The recent data on Bitcoin holders is a fascinating study, one that underscores the dynamic nature of this nascent asset class.


Over the past month and a half, approximately $36.65 billion worth of Bitcoin, held by investors with relatively short holding times, has been sold onto the market, amounting to 642,366 units of the cryptocurrency

Based on information from crypto analysis company Glassnode, as reported by renowned analyst Ali Martinez, there’s been a consistent decline in the amount of Bitcoin owned by short-term investors. Lately, this figure took a substantial dip

According to the analyst’s findings, as the group that owns Bitcoin purchases it, the value of the cryptocurrency generally increases; however, its value decreases when this holder cohort decides to offload it

Although some aim to be long-term investors (diamond hands 💎🙌 and HODL), it’s short-term holders who significantly influence Bitcoin’s value. When they purchase, the price of Bitcoin generally increases, but when they sell, it takes a hit

— Ali (@ali_charts) September 2, 2024

Responding to the cryptocurrency analyst Martinez, who goes by Checkmate on the microblogging platform, he proposed that rather than short-term Bitcoin holders cashing out, they’re actually transitioning into long-term investors

On the social media platform X, previously known as Twitter, Martinez pointed out an increase in the Taker Buy/Sell Ratio on cryptocurrency exchange HTX. This rise suggests a significant wave of purchasing activity, which is typically seen as a positive indicator, signaling potential upward price movement in the near future

Last week, it was noted that cryptocurrency investment products experienced approximately $300 million in withdrawals. This was due to robust U.S. economic data, which arrived during a time when pessimistic feelings were prevalent across multiple sources and locations

Based on CoinShares’ recent analysis in their Digital Asset Fund Flows report, there was an outflow of approximately $305 million from cryptocurrency investment products during the past week. This trend was influenced by robust economic data emerging from the U.S., which reduced the probability of a 50-basis point interest rate reduction

As a researcher in this field, I recently observed that investments linked to Bitcoin experienced withdrawals worth approximately $319 million during the last seven days, whereas those that allow for speculators might say that the opposite of this: I expect inflows of around $4.4 million for Bitcoin shorting products, the highest since March

As a researcher examining Ethereum, the second-largest cryptocurrency by market capitalization, I observed a total of $5.7 million in outflows as trading activity remained steady, only reaching 15% of the volumes that occurred when Ether exchange-traded funds (ETFs) were initially launched in the U.S

Read More

2024-09-05 03:34