Bitcoin Short-Term Holders Contribute to $2 Billion Selloff, Emphasizing the "Sell The News" Trend

Bitcoin Short-Term Holders Deposit $2 Billion in BTC to Exchanges

New data on the blockchain reveals that short-term holders of Bitcoin have recently deposited a significant amount of BTC to exchanges. These short-term holders are investors who purchased their coins within the last 155 days, making them more likely to sell at any given point compared to long-term holders.

Tracking Short-Term Holder Selling Through Exchange Inflows

One way to monitor whether short-term holders are selling is by examining their exchange inflows. When these investors want to sell, they often deposit their coins into centralized platforms, indicating the level of selling pressure they are exerting. Recent data shows that over $2 billion worth of Bitcoin was sent to exchanges from short-term holders.

Selloff Expected Ahead of Bitcoin Spot ETF Decision

The influx of BTC from short-term holders comes at a time when the decision on a Bitcoin spot ETF by the US SEC is imminent. Many short-term holders may anticipate a “sell-the-news” scenario once the decision is made, leading to further inflows to exchanges.

BTC Price and Market Reaction

Currently, Bitcoin is trading at approximately $45,200, experiencing a 4% increase in the past week. The market has been closely watching for developments regarding the Bitcoin spot ETF and reacting strongly to related news.

Hot Take: Short-Term Holders Fueling Selling Pressure Ahead of Major Decision

On-chain data reveals that short-term holders of Bitcoin have deposited a substantial amount of BTC into exchanges, potentially signaling a selloff in anticipation of the upcoming Bitcoin spot ETF decision. These investors, who purchased their coins within the last 155 days, are more likely to sell compared to long-term holders. Monitoring exchange inflows provides insights into the level of selling pressure from short-term holders. With over $2 billion worth of Bitcoin sent to exchanges, it suggests that both profit-taking and capitulation at a loss are occurring. The market is closely watching for the SEC’s decision, with further inflows expected if it is perceived as a sell-the-news event.