"Bitcoin experienced a dramatic dip last week, with a massive exodus of leverage from derivatives causing a downward spiral. But the real concern? The stability of Bitcoin's price above the $26,000 level. Short-term holders, those new to the market and more reactive to price fluctuations, are sitting on approximately 1.28 million BTC at a loss. If the volatility continues, an oversupply of BTC could hit the exchanges, creating immense selling pressure. The market is at a critical juncture, with the actions of these short-term holders... would they trigger further price cascades?"
Short-term holders are sitting on 1.3M BTC at a loss Short-term holders are sitting on 1.3M BTC at a loss
Bitcoin's drop to $26,200 caused a 82% drop in the percentage of short-term holder supply in profit.
2 min read
Updated: Aug. 21, 2023 at 8:08 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
