Bitcoin Panic: $4 Billion Hits Exchanges as BTC Plunges Below $70K – What’s Next?

In a wave of panic selling, Bitcoin short-term holders (STHs) sent a staggering $4 billion worth of BTC to exchanges on October 31 as the cryptocurrency’s price slipped below $70,000. This mass sell-off has sent ripples through the market, raising questions about Bitcoin’s next move as speculators brace for potential volatility.

📉 The Panic Unfolds: Why $70K Triggered a Sell-Off

Bitcoin, which recently neared an all-time high, saw its price tumble below the critical $70K mark, spurring short-term holders into action. Data from analytics firm Glassnode revealed that these reactionary traders offloaded over 54,000 BTC in a single day—the highest volume since April. STHs, who generally hold BTC for less than 155 days, are known for their quick response to price shifts, often selling at the first signs of a downtrend.

The latest Glassnode data paints a picture of nervous sentiment. On October 31 alone, nearly 54,352 BTC were sent to exchanges, amounting to around $3.76 billion at the time—indicative of a wave of sellers looking to cut their losses.

💸 Profit Margins Vanish as STHs Sell at a Loss

Interestingly, a significant portion of these coins was sent to exchanges at a loss, as measured by the STH Spent Output Profit Ratio (SOPR). The SOPR, which tracks profit levels for outgoing transactions, fell to under 1.01—meaning STHs were selling below their purchase prices. This figure dropped from nearly 1.04 on October 29, a sign that holders’ confidence was swiftly eroding as prices slipped.

STHs, unlike long-term holders (LTHs) who tend to hold through market dips, are more sensitive to price volatility. Glassnode’s data suggests these holders’ profit margins had almost evaporated by Halloween, prompting a rush to minimize losses.

🔥 The $68K Battle Zone: Will BTC Bounce Back?

The current order book data indicates a new area of interest around $68,000, as tracked by CoinGlass. Market liquidity data shows that ask liquidity—essentially, sell orders—is clustered between the current spot price and all-time highs. With many orders positioned just below $70K, there’s a chance BTC could see a temporary support zone, depending on how market sentiment evolves.

However, the risk of a “deviation” above $70K remains, where prices could continue to slide until significant buy orders stabilize the market. The question on every trader’s mind: will $68,000 act as a springboard, or is it just a brief stop on the way down?

🚨 Short-Term vs. Long-Term: A Battle of Nerves

It’s clear that this recent price dip has rattled short-term speculators, but long-term holders remain largely unfazed. Glassnode’s data shows that while STHs are flooding exchanges, LTHs—the resilient force of Bitcoin—have held steady. Historically, LTHs are less likely to sell during downturns, often waiting for prices to recover or even accumulate during dips.

This divide between short-term panic sellers and long-term HODLers adds another layer of complexity to BTC’s price dynamics. If STHs continue selling, it could temporarily suppress prices, but the steadfastness of LTHs suggests there’s underlying confidence in Bitcoin’s long-term value.

⚠️ What’s Next? A Crucial Week Ahead for Bitcoin

Bitcoin’s next moves will hinge on how the market interprets this $70K threshold. If the panic selling persists, BTC could face additional downward pressure, potentially testing support zones around $68K or lower. However, a rally fueled by LTH resilience and institutional interest could stabilize prices and push BTC back above $70K.

With billions on the line, this is shaping up to be a high-stakes week for Bitcoin, as speculators and HODLers watch closely. Whether this is just a blip or the start of a more profound correction remains to be seen.

🧐 Key Takeaways:

• Short-term holders panicked, sending $4 billion in BTC to exchanges on Oct. 31 as Bitcoin dropped below $70K.

• STH profit margins have dwindled, with many selling at a loss as the SOPR fell below 1.01.

• The $68,000 level is a crucial area of interest, with significant liquidity positioned between spot prices and all-time highs.

• Long-term holders continue to hold firm, signaling potential confidence in BTC’s long-term trajectory.

📊 Final Thoughts:

Bitcoin’s price action is at a pivotal point. Will BTC rebound and prove the HODLers right, or will short-term jitters drag it down further? The next few days will likely determine if $70,000 was merely a minor speed bump—or the beginning of a broader trend shift.