Bitcoin’s four-day crash from $115,000 to $104,000 marked a healthy market reset, flushing out leverage and shifting investors to defensive mode, per Glassnode data. This correction highlights growing speculative capital dominance but limits upside until long-term holders stop selling BTC.
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Bitcoin dropped to a four-month low of $104,000 last Friday, last seen in June, according to TradingView data.
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The decline prompted a defensive rotation, with short-term holders increasing their supply share amid capital preservation efforts.
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Open interest fell 30%, reducing liquidation risks; long-term holders continue selling to institutions, per Glassnode analyst Chris Beamish.
Discover how Bitcoin’s recent four-day crash to $104,000 signals a healthy reset amid investor caution. Explore on-chain insights and expert views on BTC’s future trajectory—stay informed on crypto market shifts today.
What Caused Bitcoin’s Four-Day Crash to $104,000?
Bitcoin’s four-day crash was driven by excess leverage unwinding and shifting investor sentiment, dropping from $115,000 on Tuesday to $104,000 by Friday—a four-month low last seen in June, as shown in TradingView data. Analysts from blockchain firm Glassnode describe this as a healthy reset rather than a broader downturn, with short-term holders now dominating supply. The event flushed speculative positions, promoting capital protection over aggressive bets.
On-chain metrics reveal that short-term Bitcoin holder supply has risen, indicating speculative capital’s growing influence in the market. Glassnode’s Tuesday report notes this trend points to a protective shift, where traders prioritize preserving assets amid volatility. This adjustment follows a period of rapid gains, normalizing market dynamics without deeper systemic issues.
How Are Long-Term Bitcoin Holders Influencing the Market Recovery?
Long-term Bitcoin holders are actively selling to institutional buyers, absorbing supply through digital asset treasuries and exchange-traded funds, according to Glassnode analyst Chris Beamish. This flow has stabilized prices post-crash but caps upside potential until selling slows—Beamish emphasized in a recent analysis that institutions have taken in substantial long-term holder BTC, yet ongoing transfers limit momentum. Official ETF data shows net outflows of $40 million on Monday, marking four straight days of redemptions amid political noise like tariff threats.
Bitcoin’s open interest dropped approximately 30%, per Glassnode’s findings, making the market less prone to liquidation cascades and supporting a steadier recovery path. Expert insights from Beamish highlight that while ETFs and treasuries have handled “an incredible amount” of supply, sustained institutional demand is key to breaking current resistance levels. This dynamic underscores the interplay between retail speculation and institutional accumulation in shaping BTC’s trajectory.
The crash also intersects with broader market uncertainties, including comparisons to traditional assets like gold rallying simultaneously. Jan3 CEO Samson Mow commented on this phase as a “hard time” for investors with weak conviction, urging them to hold through temporary dips. Mow’s view aligns with on-chain evidence, predicting Bitcoin will soon add significant value despite current hesitations.
Mow noted in his analysis that the $100,000 to $200,000 range tests HODLers’ resolve, especially as past cycles differ and other assets compete for attention. Glassnode’s comprehensive metrics, including holder behavior and options data, reinforce that the four-day crash was a necessary purge of over-leveraged positions, setting the stage for more sustainable growth. As of October 2025, Bitcoin trades around $105,000, with analysts monitoring long-term holder activity closely—data from Glassnode shows their supply share at historic lows, signaling potential for renewed accumulation if selling eases.
Published by COINOTAG on October 15, 2025. Last updated October 16, 2025. This article draws on on-chain analytics from Glassnode and market data from TradingView to provide factual insights into Bitcoin’s recent movements.
Frequently Asked Questions
What triggered the recent Bitcoin four-day crash and its impact on investor behavior?
The Bitcoin four-day crash from $115,000 to $104,000 stemmed from deleveraging and a shift to defensive strategies, as reported by Glassnode. Investors moved to protect capital, increasing short-term holder supply by 30% in open interest reduction, minimizing further liquidation risks while resetting speculative excesses in about 40 words of market adjustment.
Is Bitcoin’s crash a sign of a larger market downturn or just a temporary correction?
According to Glassnode’s on-chain analysis, Bitcoin’s recent four-day crash represents a healthy temporary correction rather than the onset of a major downturn. It cleared excess leverage, with metrics showing reduced vulnerability and ongoing institutional absorption of supply, fostering stability for future gains as spoken naturally for voice queries.
Key Takeaways
- Healthy Market Reset: The four-day crash flushed out speculative leverage, promoting a defensive investor rotation per Glassnode data.
- Long-Term Holder Role: Continued selling to institutions limits upside, but ETF inflows could accelerate recovery if trends reverse.
- Reduced Risks: A 30% drop in open interest lowers liquidation threats, advising HODLers to maintain conviction amid volatility.
Conclusion
Bitcoin’s four-day crash to $104,000 has underscored the need for caution in a Bitcoin crash environment, with long-term holders’ selling dynamics playing a pivotal role in recovery prospects, as evidenced by Glassnode’s on-chain insights. As institutional demand persists, this reset positions the market for potential upward momentum. Investors should monitor holder behavior closely—consider strengthening your portfolio strategy with informed, data-driven decisions today.
