Bitcoin Price Plummets Below $95,000
On January 8, Bitcoin’s price took a significant nosedive, dropping below $95,000. This sudden drop erased the gains it had made earlier in the week when it briefly crossed the $100,000 mark.
Key Players in the Sell-Off
- Short-term holders (STHs) were identified as the primary contributors to the sell-off.
- Over 26,000 BTC, valued at more than $2.4 billion, were moved to exchanges at a loss.
Analysis from Alphractal
Further analysis conducted by Alphractal revealed that the selling pressure was accompanied by a broader decline in accumulation trends among short-term holders.
Accumulation vs. Distribution of STH
- The metric showed a growing preference for liquidating rather than accumulating BTC holdings among STHs.
Weakening Demand
Since December 5, STH accumulation has been steadily declining. This reduced demand from these investors has been reflected in Bitcoin’s recent price volatility, showcasing the significant influence they have on market trends.
Disclaimer
It is important to note that the opinions expressed in this article are solely those of the writers and do not necessarily reflect the views of CryptoSlate. Investing in cryptocurrencies carries inherent risks, and it is advisable to conduct thorough research before making any investment decisions.
