Originally published on: November 01, 2024
Recent data has revealed that Bitcoin speculators reacted swiftly as the price of BTC dropped below $70,000. Glassnode, an onchain analytics firm, reported that short-term holders (STHs) sold off 54,000 BTC on October 31, marking the largest sell-off since April.
In response to the declining price of BTC, opportunistic traders began to panic, leading to a reversal in BTC/USD near all-time highs earlier in the week. Glassnode’s data showed that on October 31 alone, 54,352 BTC (equivalent to approximately $3.76 billion) were sent to exchanges in inbound transactions.
Short-term holders, who had been holding onto BTC for up to 155 days, are known for their reactionary trading behavior. Unlike long-term holders (LTHs) who can hold onto their assets for extended periods, STHs tend to react quickly in response to price volatility.
The STH spent output profit ratio (SOPR) has dipped below 1.01, indicating that many speculators are now selling at a loss. Additionally, exchange order book liquidity data suggests that the $68,000 price level is a key area of interest for traders.
Despite differing opinions among traders about the significance of the recent price movements, many are closely watching the upcoming United States macroeconomic report on November 1 for potential market impact.
Please note that this article does not provide investment advice. Readers are encouraged to conduct their own research before making any investment decisions. For more insights and updates on the market, subscribe to the Markets Outlook newsletter.
