Bitcoin Decline Driven by Short-Term Holder Panic Selling
CryptoNewsTerminal Staff06 Aug, 2024
Bitcoin Decline Driven by Short-Term Holder Panic Selling
Bitcoin's recent decline below $50,000 was largely driven by panic selling from short-term holders (STHs), according to data from CryptoQuant. STHs, who held Bitcoin for less than a week, rushed to sell their holdings after the price briefly dipped below $50,000 on May 5. This led to a significant increase in selling pressure, which contributed to the decline in Bitcoin's price. In contrast, long-term holders (LTHs), who have held Bitcoin for more than 155 days, have been more resilient during the recent market turmoil. LTHs have only realized profits in the $600,000 range, which is significantly less than the losses incurred by STHs. The decline in Bitcoin's price shows that there is still significant selling pressure from new investors. These investors are more likely to panic sell when the market turns bearish, which can lead to further declines in the price of Bitcoin. Currently, Bitcoin is trading at $54,816.00, up 1.50%. However, it is still well below its all-time high of $64,804.72.
