Compass Investments

Bitcoin price drop: Long-term holders sell Spark Flash crash

Bitcoin is experiencing a hard sell-off as the coin’s price falls to ¥95,000.

Long-term holders have significantly cashed out their gains in BTC.

The market is seeing a sell-off, and major altcoins have also suffered losses.

Long-term holders of bitcoin (BTC) have lost confidence in the key digital asset, as evidenced by the continued increase in selling pressure. Their actions have sparked speculation of a possible collapse in bitcoin prices amid a downturn in euphoria.

Long-term bitcoin (LTH) holders increased their 2024/2011 sales to approximately 366,000 BTC, according to online financial data platform Glassnode.

This massive sell-off was the highest since 2024/2011.

the sale of these bitcoins signals a significant change in market dynamics. Long-term holders have historically tended to preserve assets during market fluctuations and are known for contributing to the overall stability of bitcoin prices.

Glassnode notes that recent selling activity has come from investors who owned bitcoins 6-12 months ago. Specifically, these investors are selling 1 per day, supported by good market conditions, 25,600.

Between 600 and 1,200 million LTH holders are short-term holders who bought BTC at a low price of around ¥57,900. Given that the bitcoin exchange rate has risen significantly over the past few weeks, long-term holders are likely to benefit from the purchase.

Over the past 24 hours, the bitcoin price has fallen 0.33% , reflecting the market’s reaction to growing selling pressure. However, over the past 1 week and 1 month, bitcoin has remained at 4.3% and 42.8% respectively.

The cumulative effect of these sales contributed to the overall bearish market sentiment and the rise in the bitcoin price.

According to cryptocurrency platform CoinGlass, investors liquidated 434.90 million worth of cryptocurrencies in the last 24 hours.Most of the liquidations were from long positions (¥274.76 million).

Bitcoin led the way with 1 billion 1.579 million liquidations. Long positions accounted for 827.5 million, while short positions accounted for 888.28 million. Ethereum ranked 2nd with liquidations reaching 77300 million yen (3764 million yen for long positions and 35.49 yen for short positions).

Dogecoin (DOGE), the largest memcoin, also recorded liquidations worth 28.86 million pounds. Other cryptocurrencies losing money include Solana, XRP and LTC.

A total of 156,970 traders have liquidated in the past 24 hours, with the largest liquidation on Bybit reaching £349 million. Bybit is followed by Binance, OKX, BYBIT and HTX in terms of the number of liquidated cryptocurrencies.

the latest series of liquidations is taking place amid a significant correction in the market. In addition to BTC, cryptocurrencies such as SOL, BNB and XRP fell on the daily chart.

next week will be very important for the cryptocurrency market, as important economic data and policy updates are expected to be published that will affect prices. Highlights include the FOMC meeting minutes, the US PCE inflation report and Q3 GDP data.

In addition, investors are paying attention to signs of a future Fed rate cut as the market continues to see conflicting opinions from officials.

The minutes of the meeting, which are due to be released on September 27, will also reveal whether the Fed will move away from its 2% inflation target.