Bitcoin price ($BTC ) is currently trading 13% lower than the all-time high of 108,000 USD, the largest drop since the U.S. presidential election. Strong selling pressure from long-term holders (LTHs) has caused the price of Bitcoin to plummet, while demand from short-term investors is not enough to offset the supply.
Market Movement Details
Deep price drop: Bitcoin is currently around 94,500 USD, sharply down from its peak. Some investors view this as a correction phase as the price has dropped by 10% or more.
Activity of LTHs:
According to Glassnode, LTHs (who have held BTC for at least 155 days) have sold a total of 1 million BTC since mid-September, reducing their holdings from 14.2 million to 13.2 million BTC. Just on Thursday, they sold up to 70,000 BTC, making it the fourth-largest selling day of the year 2024.
Role of STHs:
Short-term investors (#STHs ) have bought back about 1.3 million BTC from #LTHs during the same period, but the demand is still not enough to support the price. The imbalance between buyers and sellers has pushed the BTC price down further.
Bitcoin Supply Status
Circulating supply: Currently, there are 19.8 million BTC circulating in the market, with 2.8 million BTC held on exchanges. Outflow from exchanges: In recent months, about 200,000 BTC have left exchanges, reducing the available supply in the market.
Market Forecast
The groups of long-term and short-term investors will continue to be important factors to watch in the coming days. The balance between selling pressure from LTHs and demand from STHs will determine the next direction of Bitcoin's price.
Conclusion
The sell-off from long-term holders has put significant pressure on Bitcoin's price, creating opportunities for short-term investors but also posing risks of short-term instability. Investors should closely monitor supply and demand dynamics to make informed decisions.