Panic Selling Hits BTC: Bitcoin Plummets Below $70,000 Amid $2.3 Billion Sell-Off

Panic Selling Hits BTC: Short-Term Holders Trigger Major Bitcoin Sell-Off as Price Drops Below $70,000

The price of bitcoin fell below $70,000 on Thursday after hitting an all-time high earlier in the week, sending around $2.3 billion, or some 32,000 tokens, of the largest cryptocurrency to exchanges at a loss. Since the yen carry trade ended on August 5, the panic selling has been the worst. In times of market exuberance or greed, short-term holders typically buy, and when the price declines, they panic and sell. They transmitted the most Bitcoin to exchanges since March 27 on Thursday, sending almost 54,000 BTC in total.

Bitcoin Faces $6 Billion Sell-Off as Investors Prepare for U.S. Election Risks

Numerous causes could be contributing to the recent decline, which has brought Bitcoin down roughly 6% from its peak. On November 5, investors will likely reduce their risk exposure, as they usually do on the last day of the month, in anticipation of the U.S. presidential election. On Thursday, the US stock market lost nearly $1 trillion, and the magnificent seven tech stocks all turned red.

CoinDesk data, which breaks Thursday’s 54,000 bitcoin into profit and loss, indicates that profit-taking is still going strong as the cryptocurrency gets closer to its record high from March. Over the last three days, more than $6 billion worth of bitcoin has been sent to exchanges in profit, including 22,000 BTC on Thursday. Last month, Bitcoin increased by 11%.

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