According to Cointelegraph, Bitcoin (BTC) speculators reacted with panic as the market dropped below $70,000, with data from onchain analytics firm Glassnode confirming a significant sell-off. On October 31, short-term holders (STHs) offloaded 54,000 BTC, marking the highest single-day sell-off since April. This sell-off occurred as BTC/USD reversed from near all-time highs, leading to a substantial transfer of 54,352 BTC, valued at approximately $3.76 billion, to exchanges in a single day. STHs, defined as wallets holding BTC for up to 155 days, typically exhibit reactionary trading behavior, unlike long-term holders (LTHs) who keep their funds dormant for extended periods. The recent price volatility triggered a sell-off among STHs, with their aggregate profit margin quickly diminishing. Glassnode's data shows that the STH spent output profit ratio (SOPR), which measures profitability, has dropped to less than 1.01, down from nearly 1.04 on October 29. Additionally, a significant portion of the BTC sent to exchanges on October 31 was from STH entities at a loss. Exchange order book liquidity data from CoinGlass indicates that the next area of interest is around $68,000, with ask liquidity returning to sit between the current spot price and the all-time highs. Traders are divided over the significance of these moves, with some warning that the recent rise past $73,000 could be a deviation, while others believe BTC price behavior is consistent with previous halving years. Popular X account HornHairs noted that derisking into the election occurred in both 2020 and 2016, with prices never retesting the lows set the week before the election. As reported by Cointelegraph, the upcoming United States macroeconomic report on nonfarm payrolls data, due on November 1, is being closely 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.

#BTC