Bitcoin Price Drop: Long-Term Holder Selloff Spark Flash Crash

Long-term Bitcoin (BTC) holders are losing confidence in the leading digital asset, as seen by the ongoing increase in selling pressure. Their actions have ignited speculation about a potential Bitcoin price crash amid declining euphoria.

Bitcoin Long-Term Holders are Selling As Bitcoin Price falls to $92,000

According to the onchain financial data platform, Glassnode, Bitcoin Long-Term Holders (LTH) increased selling pressure to approximately 366,000 BTC in November 2024.

This massive sell-off marks the highest recorded since April 2024.

These BTC sales show a substantial shift in market dynamics. Long-term holders are historically known for their tendency to retain their assets through market fluctuations, contributing to the overall stability of the Bitcoin price.

Glassnode noted that the recent selling activity came from investors holding Bitcoin 6 to 12 months ago. Notably, these investors are selling at a rate of 25,600 per day, fueled by the favorite conditions in the market.

The 6 million to 12 million holders are short-term LTHs who bought BTC at lower prices, about $57,900. Given Bitcoin’s substantial appreciation over the past few weeks, long-term holders are likely capitalizing on their gains.

Within the last 24 hours, Bitcoin price slumped by 0.33%, reflecting the market’s reaction to the increased selling pressure. However, BTC has remained at 4.3% and 42.8% in the past week and month.

Crypto Market Liquidation

The cumulative effect of these sales has contributed to the overall bearish sentiment on the market and Bitcoin price.

According to data provided by crypto analytics platform CoinGlass, investors have liquidated $434.90 million worth of crypto over the past 24 hours. Long positions accounted for most of these liquidations ($274.76 million).

Bitcoin led the market liquidations with $115.79 million. Long positions accounted for $88.28 million and short $27.5 million. Ethereum came second with liquidations reaching $73 million (long positions amounted to $37.64 million and short $35.49.

Dogecoin (DOGE), the largest memecoin, also recorded liquidations of $28.86 million. Other cryptocurrencies that are losing money include Solana, XRP, LTC, and others.

Overall, 156,970 traders were liquidated over the past 24 hours, with the largest liquidation on Bybit worth $3.49 million. Binance, OKX, Bybit, and HTX followed Bybit in terms of the amount of liquidated crypto.

The latest string of liquidations comes amid a substantial market correction. Besides BTC, cryptocurrencies, including SOL, BNB, and XRP, have seen declining prices on the daily chart.

Is Market Rebound Imminent? Focus on Economic Data This Week

The following week is critical for the crypto market, with crucial economic data releases and policy updates expected to influence prices. Some major highlights include the FOMC minutes, the US PCE inflation report, and Q3 GDP data.

Additionally, investors are focused on signs of prospective Federal Reserve rate reduction since conflicting opinions among officials have kept the markets guessing.

The minutes, scheduled for release on November 27, will also reveal if the Fed is moving away from its 2% inflation target.

Moreover, U.S. debt surged $850 billion in 90 days, boosting Bitcoin’s appeal. With purchasing power in the United States falling by 25% in the last five years, governments are paying notice to Bitcoin’s scarcity.

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