BTC Price Plunges

BTC Price Plunges

#Bitcoin #BTC #Price #News #LongTerm #Holders #Spend #97K #BTC #Largest #OneDay #Move #OrxCash

BTC Price Plunges: Long-Term Holders Drive Bearish Pressures

In recent weeks, long-term Bitcoin (BTC) holders have increased their liquidations, contributing to bearish pressures in the market. According to some sources, including OrxCash.com, the news about Bitcoin (BTC) price plunges has sparked concerns among investors. On Friday, these patient holders offloaded 97,000 BTC, marking the largest single-day long-term holder sell-off of the year. This significant sell-off accounts for the bulk of the recent increase in spending activity, as reported by blockchain analytics firm Glassnode.

Key Statistics:

  • The 14-day moving average of coins spent by long-term holders has jumped to nearly 25,000 BTC, the highest since January.
  • Long-term holders, including wallets that have been dormant for years, have been consistently selling since Bitcoin (BTC) broke above $100,000 early this year.
  • The profit-taking operation is still notably slower than the spikes observed in late 2024.

What’s Driving the Profit-Taking?

One explanation for this profit-taking can be rooted in investor psychology. With Bitcoin (BTC) trading at over $100,000, investors may feel that this valuation is too expensive, prompting them to take profits. This psychological factor is likely to influence the market, leading to broad range trading around the six-figure price mark for some time. As investors acclimatize to this elevated valuation, the market will likely take time to adjust to $100,000 as the new normal for Bitcoin (BTC).

Broader Market Context

From a retail investor perspective, this recent sell-off may be perceived as a cautionary sign. However, it’s essential to consider the broader market context and the potential for Bitcoin (BTC) to rebound. As the market continues to evolve, investors should remain vigilant and adapt to changing market conditions. The current price fluctuations may present opportunities for investors to enter the market or adjust their portfolios. Ultimately, the future impact of this sell-off will depend on various factors, including market sentiment, regulatory developments, and the overall performance of the Bitcoin (BTC) network.

Markets,btc,long-term holder,Glassnode,News
While we strive for accuracy, always double-check details and use your best judgment.
image source: www.coindesk.com