CryptoQuant’s on-chain analytics reveal that short-term Bitcoin holders have offloaded approximately 15,000 BTC at a loss this week, signaling increased downward pressure on BTC prices. Data indicates that on Monday alone, 959 BTC were moved to exchanges at a loss, escalating to 16,700 BTC by Wednesday, coinciding with a price decline from $106,500 to $103,500. This pattern underscores the tendency of short-term investors to engage in panic selling during market downturns, often crystallizing losses.
Such liquidation events typically result in the transfer of Bitcoin assets from short-term holders to long-term investors, who provide market stability and contribute to the establishment of a robust price floor. The STH-LTH Net Position Change metric highlights sustained selling activity by short-term holders over the past month, with long-term holders absorbing the majority of these sales. This interplay between investor cohorts has been instrumental in supporting BTC prices above the critical $100,000 threshold.