2023-10-17 11:26 |
Quick Take
The influence of short-term holders on Bitcoin’s market dynamics was palpable yesterday on Oct. 16, as Bitcoin prices surged to $30,000, fueled by the misinformation of a spot exchange-traded fund (ETF) being reported by CoinTelegraph.
Short-term holders, defined as investors who purchased Bitcoin within the last 155 days, capitalized on this surge, selling approximately 30,000 Bitcoins at a profit. This marked the third-highest such instance this year.
Historically, a similar trend has been observed during local bottoms in the price, as seen in January, March (following the SVB collapse), and June. In such instances, Bitcoin prices tended to appreciate, prompting this cohort to sell for profits. This behavior, however, exerts additional selling pressure on Bitcoin, creating potential short-term headwinds for the cryptocurrency’s price.
Conversely, last week, this group also accounted for the second-highest amount of Bitcoins sold at a loss this year. This occurred amidst widespread fear as Bitcoin prices plummeted to $26,000. While some of this can be attributed to traders locking in profits and losses due to Bitcoin’s minimal volatility this year, it underscores the significant role short-term holders play in the cryptocurrency’s price movements.
The supply of Bitcoin held by short-term holders has reached an all-time low of 2,357,000.
The post Bitcoin’s wild ride to $30k and back reveals short-term holders’ market games appeared first on CryptoSlate.
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