Originally published on: November 01, 2024
Recent data has revealed that Bitcoin speculators were quick to react as the price of BTC dropped below $70,000. According to onchain analytics firm Glassnode, short-term holders (STHs) rushed to offload 54,000 BTC on October 31st, marking the largest sell-off since April.
As BTC/USD retreated from its near all-time highs this week, opportunistic traders saw an opportunity to profit. Glassnode reported that on October 31st alone, 54,352 BTC (equivalent to about $3.76 billion) were sent in inbound exchange transactions by STH entities.
STH wallets are known to exhibit reactionary trading behavior, unlike long-term holders (LTHs) who tend to hold onto their assets for extended periods. Price volatility often triggers STHs to sell, with Glassnode indicating that many are now facing eroded profit margins, leading to a sense of urgency to offload their holdings.
The STH spent output profit ratio (SOPR) currently stands at less than 1.01, down from nearly 1.04 on October 29th. Additionally, a significant amount of the coins transferred to exchanges on October 31st were from STH entities at a loss.
Looking at exchange order book liquidity data, the $68,000 level is now in focus, with ask liquidity returning to levels between the current spot price and the previous all-time highs.
Some traders view the recent market movements as a deviation, while others believe it mirrors patterns from previous halving years. With the upcoming United States nonfarm payrolls data release on November 1st, risk-asset traders are closely monitoring the market for any potential impact.
It’s important to note that this article does not provide investment advice. Readers are encouraged to conduct their own research and due diligence before making any investment decisions. Don’t miss out on crucial market insights – subscribe to the Markets Outlook newsletter for weekly updates on investment opportunities and trading strategies.
