Bitcoin Falls 15% Below Record High Amid Market Uncertainty

Bitcoin (BTC) has fallen 15% from its all-time high of $108,000, the biggest decline since November's presidential election. Coin Metrics shows the biggest cryptocurrency trading at $92,808.07 at 6:57 a.m. ET on Friday, down roughly 9% from the previous day.

Long-Term Holders Sell as Short-Term Demand Falls

Long-term holders (LTHs) have sold into price strength, causing the latest price drop. LTH holdings dropped to 13.2 million BTC from 14.2 million in mid-September, according to Glassnode. LTHs sold approximately 70,000 BTC on Thursday, the fourth-largest single-day sell-off of the year.

Short-term holdings (STHs), who buy during market troughs, have bought 1.3 million BTC. STH demand hasn't kept pace with LTH selling pressure, causing the price drop.

Recent Federal Reserve predictions of fewer interest rate reduction in 2024 have knocked on risk assets, including cryptocurrencies. Equities fell, and pessimistic mood spread to crypto.

The futures market for Bitcoin showed declining demand. The annualized premium on CME's one-month futures dipped below 10%, indicating a drop in short-term betting.

ETF Outflows Indicate Institutional Decline

Investors pulled $671.9 million from U.S.-listed spot bitcoin ETFs on Thursday, a record. This ended a 15-day inflow trend and was the greatest single-day outflow since these funds began. The biggest withdrawals were $208.5 million from Fidelity's FBTC and $188.6 million from Grayscale's GBTC.

Ethereum and Crypto Market Trends

Ether (ETH) had its first net outflow of $60.5 million since November 21. Since the Fed's statement, ether has plummeted 20% to below $4,100.

Current market dynamics emphasize the necessity of watching holder behavior, exchange balances, and derivatives data for price moves in the next days.

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