Bitcoin (BTC) speculators engaged in panic selling as the BTC price underwent a correction towards $40,000, according to the latest on-chain data.
BTC Sodlers Ditch Holdings: 4 Billion Dollars Selloff Peaks at 18-Month High
Figures from on-chain analytics firm Glassnode indicate that short-term holders (STHs) unloaded over $2 billion in BTC on December 12 alone. This coincided with Bitcoin experiencing its most substantial single-day drop of 2023, reaching 8.1%, as confirmed by data from Cointelegraph Markets Pro and TradingView.
In response to this market correction, the more speculative segment of the Bitcoin investor base took similar actions, reducing their exposure in what seems to be a manifestation of hesitancy regarding the market outlook.
Glassnode’s data reveals that STHs, defined as entities holding BTC for 155 days or less, transferred $1.93 billion worth of coins to exchanges on December 11, followed by an additional $2.08 billion on the subsequent day. Both days marked long-term highs in terms of STH selling pressure, involving entities in both profit and loss.
The last instance of single-day selling surpassing the $2 billion mark was observed in June 2022, a reaction to the impending collapse of the blockchain firm Celsius.
Highlighting the significance of the week’s STH movements, James Van Straten, a research and data analyst at the crypto insights firm CryptoSlate, posted on social media platform X (formerly Twitter) on December 12.
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