Bitcoin speculators send 4B to exchanges when BTC price loses $70,000
Bitcoin (BTC) speculators were shocked when the market dropped below $70,000, the latest data confirms.
Data from onchain analytics firm Glassnode shows that short-term holders (STHs) loaded 54,000 BTC on October 31 – the most since April.
As the BTC price gives up the profit, the STH makes a profit.
Lucky Bitcoin traders quickly lost their temper this week as BTC/USD traded off all-time highs.
According to Glassnode, which monitors the volume of transactions from STH entities to the exchange, on October 31 alone, 54,352 BTC (currently $3.76 billion) were sent in foreign currency transactions.
Bitcoin STH amount transfer to exchanges. Source: Glassnode
STHs are wallets that hold the amount of BTC received for up to 155 days. Unlike long-term holders (LTHs), whose money may lie dormant in a wallet for months or years, they exhibit reactive trading behavior.
Price volatility is a trigger for the STH Group, and Glassnode shows that their gross margins are rapidly being eroded, adding to the sense of urgency to sell.
STH's Spent Earnings Profit Ratio (SOPR), which measures that number, currently measures below 1.01, with 1 as the breakout point. October 29th, close to 1.04.
Bitcoin STH-SOPR. Source: Glassnode
Glassnode also revealed that a significant portion of the coins sent to exchanges on October 31st were from STH entities at a loss.
Transfer Bitcoin STH, LTH amount to exchanges. Source: Glassnode
Bitcoin threatens to “turn” above $70,000
Data from tracking the exchange's order book liquidity, CoinGlass, meanwhile, points to the next area of interest around the $68,000 circle. Ask for liquidity to settle between the current spot price and all-time highs.
RELATED: Bitcoin ETF Risks New ‘FOMO' High as BTC Price Flows Around $1B Daily
BTC liquid temperature map (screenshot). Source: CoinGlass
Analyzing recent activities, traders are divided according to their importance. Some have warned that the trip past $73,000 may be a complete “distortion,” while others have argued that BTC's price behavior continues to echo the past half-year.
“The panic 5-6 days before the election happened in both 2020 and 2016,” Hornhers of the popular X label told his followers.
“Prices continued to retest the lows set in the week before the election. Be careful what is sold here.
Source: Keith Allen
As Cointelegraph reports, the week's key US macroeconomic report is non-farm payrolls data due on November 1 and is being closely watched by risk-asset traders.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
