Bitcoin's price experienced a sharp decline, dropping below $95,000 on January 8. This downturn wiped out the gains made earlier in the week when Bitcoin briefly surpassed $100,000.
Data from CryptoQuant indicates that short-term holders (STHs)âdefined as investors holding Bitcoin for less than 155 daysâwere significant contributors to this sell-off. Over 26,000 BTC, valued at more than $2.4 billion, were moved to exchanges at a loss.
Source: CryptoQuant
Further analysis from Alphractal revealed that this wave of selling pressure aligns with a broader decline in accumulation trends among short-term holders. The âAccumulation vs. Distribution of STHâ metric indicates a growing preference among STHs for liquidating rather than accumulating their Bitcoin holdings.
Source: Alphractal
Notably, STH accumulation has been in a steady decline since December 5. This diminishing demand from short-term holders is closely linked to Bitcoinâs recent price volatility, highlighting the impactful role these investors have on market trends.
Source: Alphractal
Comments
Join Our Community
Sign up to share your thoughts, engage with others, and become part of our growing community.
No comments yet
Be the first to share your thoughts and start the conversation!