Bitcoin speculators send $4B to exchanges as BTC price loses $70K
2024.11.01 03:51
Bitcoin (BTC) speculators panicked as the market dipped below $70,000, the latest data confirms.
Data from onchain analytics firm Glassnode shows that short-term holders (STHs) offloaded 54,000 BTC on Oct. 31 — the most since April.
STH profits fizzle as BTC price gives up gains
Opportunistic Bitcoin traders quickly lost their cool as BTC/USD reversed from near all-time highs this week.
According to Glassnode, which tracks transfer volumes from STH entities to exchanges, Oct. 31 alone saw 54,352 BTC (currently $3.76 billion) sent in inbound exchange transactions.
Bitcoin STH transfer volume to exchanges. Source: Glassnode
STHs are wallets hodling a given amount of BTC received for up to 155 days. They typically display reactionary trading behavior, in contrast to long-term holders (LTHs) whose funds can sit dormant in wallets for months or years.
Price volatility is a classic trigger for the STH cohort, and Glassnode reveals that their aggregate profit margin is quickly being erased, likely adding to the sense of urgency to sell.
The STH spent output profit ratio (SOPR), which quantifies that figure, currently measures less than 1.01, with 1 as the breakeven point. On Oct. 29, it was nearly 1.04.
Bitcoin STH-SOPR. Source: Glassnode
Glassnode additionally shows that a significant portion of the coins sent to exchanges on Oct. 31 were from STH entities at a loss.
Bitcoin STH, LTH transfer volume to exchanges. Source: Glassnode
Bitcoin risks “deviation” above $70,000
Exchange order book liquidity data from monitoring resource CoinGlass meanwhile shows the next area of interest circled around $68,000. Ask liquidity has returned to sit between the current spot price and the all-time highs.
Related: BTC price risks new ‘FOMO’ top as Bitcoin ETF inflows near $1B daily
BTC liquidation heatmap (screenshot). Source: CoinGlass
Analyzing the latest moves, traders were split over their significance. While some warned that the entire trip past $73,000 could be a “deviation,” others argued that BTC price behavior continues to echo previous halving years.
“Derisking into the election 5-6 days before it takes place happened in both 2020 and 2016,” popular X account HornHairs told followers.
“Price then went on to never retest the lows set the week before the election ever again. Be careful what you sell here.”
Source: Keith Alan
As Cointelegraph reported, the week’s key United States macroeconomic report in the form of nonfarm payrolls data is due on Nov. 1 and is being keenly watched by risk-asset traders.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
