Panic Selling? Short-term Bitcoin Holders Offloaded $36.6 Billion in BTC
Since the middle of August a specific cohort of Bitcoin investors, those holdings onto the cryptocurrency for shorter periods of tie, have offloaded 642,366 BTC, worth more than $36.65 billion, onto the market.
According to data from cryptocurrency analytics firm Glassnode shared by popular analyst Ali Martinez, the amount of Bitcoin held by short-term holders has been decreasing steadily over time, and recently saw a significant downturn.
Per the analyst, when this holder cohort buys Bitcoin the price of the cryptocurrency tends to rise, but it also tends to drop when these holders sell.
While many aspire to be diamond hands đđ and HODL, short-term holders actually have a big impact on #Bitcoin’s price. When they buy, $BTC typically rises, but when they sell, the market feels the pain.
Since mid-August, these holders have offloaded 642,366 #BTC! pic.twitter.com/cXEZXeL8dD
â Ali (@ali_charts) September 2, 2024
In response to Martinez another cryptocurrency analyst, known on the microblogging platform by Checkmate, suggested that short-term Bitcoin holders arenât selling their holdings, but that instead more are âmaturing into long-term status.â
In a separate post on the microblogging platform X (formerly known as Twitter), Martinez noted that there was a âspike in the Taker Buy/Sell Ratioâ on cryptocurrency exchange HTX which âindicates a surge in aggressive buyingâ and is interpreted as a sign of âupward momentum ahead.â
As reported, cryptocurrency investment products saw over $300 million of outflows over the past week over âstronger-than-expected economic dataâ in the United States, with the data coming amid âwidespread negative sentiment evident across various providers and regions.â
According to CoinSharesâ latest Digital Asset Fund Flows report, cryptocurrency investment products saw $305 million of ouflows over the past week, driven by the strong economic data coming out of the US that diminished the likelihood of a 50-basis point interest rate cut. â
Investment products offering exposure to the flagship cryptocurrency Bitcoin saw outflows of $319 million over the past week, while products shorting BTC saw inflows of $4.4 million, the largest figure since March.
Meanwhile, products focused on the second-largest cryptocurrency by market capitalization, Ethereum, saw $5.7 million of outflows as trading volumes stagnated to reach just 15% of the volumes seen when spot Ether exchange-traded funds (ETFs) were launched in the United States.
Featured image via Unsplash.