Massive Bitcoin Sell-Off Sparks Market Turbulence, Analyst Warns
According to well-known crypto analyst Ali Martinez, a significant shift has occurred in Bitcoin trading recently.
Martinez reported that short-term holders have sold off approximately 642,366 BTC, equating to about $36.4 billion, in just a few weeks.
While many aspire to be diamond hands 💎🙌 and HODL, short-term holders actually have a big impact on #Bitcoin ‘s price. When they buy, $BTC typically rises, but when they sell, the market feels the pain.
Since mid-August, these holders have offloaded 642,366 #BTC ! pic.twitter.com/cXEZXeL8dD
— Ali (@ali_charts) September 2, 2024
Martinez explains that while many investors strive to hold onto their Bitcoin for the long haul, short-term holders can have a substantial impact on Bitcoin’s market. When these holders sell, it often leads to a decline in Bitcoin’s price.
In contrast, the on-chain analyst Checkmate suggests that these Bitcoin assets might simply be transitioning from short-term to long-term holdings, rather than being sold off. Short-term holders are typically those who have held their Bitcoin for less than 155 days.
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Crypto Analyst Sounds Alarm: Investor Interest in Bitcoin Fading FastAdditionally, Martinez pointed out that Bitcoin miners have recently sold 2,655 BTC, worth around $150 million, over the past weekend.
#Bitcoin miners sold 2,655 $BTC over the weekend, worth around $154 million! pic.twitter.com/8VXDETcDdf
— Ali (@ali_charts) September 2, 2024
However, he also noted an increase in the Bitcoin Taker Buy/Sell Ratio on the HTX exchange, indicating a rise in aggressive buying activity, which may suggest potential upward momentum for Bitcoin.
The Bitcoin Taker Buy/Sell Ratio measures the volume of buy trades compared to sell trades in perpetual swap contracts, according to CryptoQuant, a digital asset analytics firm.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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