Bitcoin Short-Term Holders Panic-Sell Amid Market Vibration


In a notable ripple of the volatile Bitcoin current, recent on-chain data reveals a significant stumble among the community of short-term holders. Hit by a brisk wind of drawdown, they scurried to make substantial exchange deposits, all at a loss, demonstrating the erratic dance of supply and demand within the cryptocurrency landscape.

A swift and striking movement of capital occurred among those Bitcoin investors labeled “short-term holders” (STH’s). Defined by their recent investment, these holders had acquired their coins within the past 155 days. Standing on the other side of the divide is the more steadfast group known as “long-term holders” (LTHs). The contrast between the two lies within the investment timeframe, a gauge distinguishing the fleeting from the perpetual venture.

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Generally, time tends to fortify an investor’s grip on their coins. The more their investment ages, the more resilient they become to selling. Thus, the volatile nature of this Bitcoin segmentation represents a thin line separating the fickleness of the STH’s from the stalwart stance of the LTH’s, the so-called “diamond hands” of the market.

The tremor of significant market shifts, like a price rally or crash, often sends the STH’s into reactionary mode. Recently, Bitcoin experienced a significant drawdown, igniting a flurry of moves among these short-term players.

A closer look at the on-chain data, as highlighted by a Glassnode chart shared by Straten, paints a vivid picture. The chart details the shift in the transfer volume, a calculated loss surging from STH-owned wallets to centralized exchanges. Amid the tremors, Bitcoin’s short-term holders made hefty deposits, transferring a staggering amount of tokens at a loss into the sanctuary of exchange-affiliated wallets.

Typically, inflows into exchanges suggest an increased demand for the versatility they offer, which can hint at impending sales. Given the timing of these deposits, hot on the heels of a sharp BTC price drop, it’s plausible that the moves were triggered by panic-selling.

Despite Bitcoin hovering tantalizingly near its all-time high, a significant proportion of the STH group remains under profit. Therefore, the volume loss represents the casualties who grasped at the recent highs.

A similar ripple was observed earlier in the year, when FOMO (Fear Of Missing Out) buyers succumbed to panic-selling shortly after Bitcoin’s ATH price. The exchange transfer volume loss from STH’s spiked dramatically during the subsequent plunge, affirming the flight of those lured by the allure of the ATH.

This most recent bout of capitulation saw Bitcoin short-term trader’s depositing a staggering $5.2 billion worth of depreciated coins into various exchanges within the space of 48 hours.

Though Bitcoin experienced a plummet in value just a few days ago, the cryptocurrency has struggled to regain an upward stride, its price fluctuating around $66,500. With the ebb and flow of its value, the message of Bitcoin’s market nuances becomes even clearer – invest wisely and hold steadfast, for the crypto current is both fast and fickle.

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Melinda Cochrane is a poet, teacher and fiction author. She is also the editor and publisher of The Inspired Heart, a collection of international writers. Melinda also runs a publishing company, Melinda Cochrane International books for aspiring writers, based out Montreal, Quebec. Her publication credits include: The art of poetic inquiry, (Backalong Books), a novella, Desperate Freedom, (Brian Wrixon Books Canada), and 2 collections of poetry; The Man Who Stole Father’s Boat, (Backalong Books), and She’s an Island Poet, Desperate Freedom was on the bestseller's list for one week, and The Man Who Stole Father’s Boat is one of hope and encouragement for all those living in the social welfare system. She’s been published in online magazines such as, (regular writer for) ‘Life as a Human’, and Shannon Grissom’s magazine.