Recently, the Bitcoin price fell below $70,000, triggering panic among short-term holders and leading to significant loss sales.
Data from Glassnode shows that on October 31, short-term holders (STH) delivered 54,000 BTC to exchanges, making this the most severe sell-off since April, resulting in significant losses for holders.
As the market fluctuates, Glassnode emphasizes that short-term holders are selling at a loss, with their spent output profit ratio (SOPR) dropping below 1, indicating that the market is in a severe adjustment phase.
The decline in Bitcoin prices has caused panic among short-term holders, leading to a large amount of selling due to losses, while an analysis of market behavior reveals the potential for future price fluctuations.
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Bitcoin price falls below $70,000, short-term holders react
When Bitcoin prices drop below the critical threshold of $70,000, panic among short-term holders is instantly ignited. These investors quickly react by liquidating part of their holdings on exchanges. According to Glassnode, on just October 31, approximately 54,352 BTC (around $3.76 billion) were transferred to exchanges. This represents the largest sell-off since April, clearly showing that trader sentiment has undergone a significant change.
Market dynamics and profitability concerns of Singaporean real estate companies
From the market dynamics of Singaporean real estate companies, the profit outlook for short-term holders is deteriorating sharply. Glassnode reports that the spent output profit ratio (SOPR) has fallen below 1.01, indicating that most current holders are selling at a loss. This sharp decline from a value close to 1.04 two days ago clearly reflects the spread of fear sentiment in the market. In the face of increasing price volatility, the decline in profit margins has led many short-term holders to consider urgently liquidating their positions.
Potential impacts of macroeconomic factors
Macroeconomic factors also add complexity to the current situation. The non-farm payroll report set to be released on November 1 is expected to affect risk assets, including cryptocurrencies. Traders are closely monitoring how these reports will influence Bitcoin's price movements, especially considering historical trends observed during election cycles. Notably, some traders recall similar situations where Bitcoin experienced significant price fluctuations before the U.S. elections in previous years.
Analyzing current price behavior and market sentiment
In analyzing current price behavior and market sentiment, market analysis shows that traders are divided. Some experts believe that recent price movements deviate from established trends, while others point out that this reflects cyclical price behavior triggered by past halving events.
Conclusion
The selling behavior of short-term Bitcoin holders indicates that investor confidence is quite fragile in the face of a rapidly changing market. Given that Bitcoin prices hover around $70,000, market participants are advised to stay alert and keep updated on the latest developments, especially as upcoming macroeconomic reports may impact future price trends. Understanding the behavior dynamics of short-term holders during these volatile periods is crucial for both existing and potential investors.
