Bitcoin Market Update: LTHs Accelerate Sell-Off, Price Drops Below $95,000
Bitcoin Market Update – Bitcoin (BTC) is currently trading 13% below its all-time high of approximately $108,000, marking the most significant dip since Donald Trump was elected as U.S. president in November 2016. This latest price correction has sparked significant interest within the cryptocurrency community, especially given that the largest cryptocurrency has experienced multiple periods where it was about 10% below its record high. This level of decline is often considered a correction by investors.
Long-Term Holders (LTHs) Lead the Sell-Off
The selling pressure driving Bitcoin’s recent price drop can largely be attributed to Long-Term Holders (LTHs), which are investors who have held Bitcoin for at least 155 days. LTHs are often known for selling into price strength after accumulating Bitcoin when prices were lower. As of recent data, these long-term investors have been actively distributing a large portion of their BTC holdings.
According to Glassnode, LTHs began reducing their positions approximately a week ago, and this trend has accelerated in recent days. Since mid-September, LTHs have reduced their holdings from around 14.2 million BTC to 13.2 million BTC. The most recent sell-off saw nearly 70,000 BTC being sold in a single day on Thursday, which marked the fourth-largest one-day sell-off of the year, according to Glassnode data.
Short-Term Holders (STHs) Step In as Buyers
Despite the significant sell-off by LTHs, there are always buyers on the other side of the transaction. In this case, Short-Term Holders (STHs) have been actively accumulating Bitcoin, purchasing roughly 1.3 million BTC over the same period. This suggests that STHs have been buying Bitcoin from LTHs, contributing to the ongoing market dynamics.
However, a shift in the market narrative has recently emerged, with LTHs appearing to want to sell more BTC than STHs are willing to buy. This imbalance has been a key factor in driving the Bitcoin price down to around $94,500.
Bitcoin Supply and Exchange Trends
Currently, there are 19.8 million BTC in circulation, with an additional 2.8 million BTC sitting on exchanges. Notably, this balance continues to shrink, with approximately 200,000 BTC leaving exchanges in the past few months. This reduction in available Bitcoin on exchanges could play a crucial role in price movements in the near future, especially as market dynamics evolve.
What’s Next for Bitcoin?
As Bitcoin continues to fluctuate in price, the actions of LTHs and STHs will be crucial in determining the cryptocurrency’s short-term trajectory. The imbalance between selling pressure from LTHs and the buying demand from STHs could continue to influence the price in the coming days. Monitoring these trends will be essential for anyone tracking Bitcoin’s future movements.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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