Bitcoin's Drop on Thursday Spurred Panic Sales Among Short-Term Holders
On November 1, 2024, short-term bitcoin holders sold over $2 billion worth of BTC at a loss as the price fell below $70,000. This marked the most significant panic selling since the yen carry trade unwind in August. In total, more than 54,000 BTC was sent to exchanges, with approximately 22,000 BTC being sent at a profit. The flurry of activity among short-term holders—who typically yield to market dips—suggests a market anxiety heightened by the approaching U.S. presidential election. Over the prior three days, these holders sent over $6 billion worth of bitcoin to exchanges to secure profits as bitcoin neared record highs last month. The current market sentiment indicates that uncertainty related to political events may prevent bitcoin from reaching new all-time highs in the near term. Analysts suggest that the typical behavior of short-term holders reflects a reactive strategy, trading on market volatility rather than long-term conviction.
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