Bitcoin Speculators Panic: STHs Run for the Exits
Bitcoin Hodlers Panic Sell, Dumping $4 Billion in Just Two Days - BTC Sales Reach Record High in 18 MonthsBitcoin sodlers sold off $4B in just two days, marking the highest level of sales in 18 months.
Well, well, well, seems like the Bitcoin speculators are getting cold feet! According to the latest on-chain data from Glassnode, these short-term holders (STHs), who can’t seem to commit for more than 155 days, are panic selling their BTC faster than an Olympic sprinter running for the gold.
Figures show that on December 12th alone, these STHs dumped more than $2 billion worth of BTC. That’s enough to buy a small island or maybe even a solid gold toilet. Talk about a selling spree!
But it gets even juicier. This single-day selling frenzy marks a record-breaking 18-month high for our dear STHs. They’re selling like there’s no tomorrow, which makes you wonder if they’ve all started hoarding canned beans in a grim underground bunker. I mean, why the sudden rush to the exits?
Well, it all started with Bitcoin’s grand performance this week. We witnessed its biggest drop of 2023 – a whopping 8.1% plunge at one point. The market got spooked, and the speculators followed suit, clutching their precious BTC a little tighter than usual.
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Now, if you’re curious about the technical details, the Glassnode data reveals that these STHs sent $1.93 billion worth of coins to exchanges on December 11th and another $2.08 billion on December 12th. That’s some serious dough! And this selling pressure hasn’t been seen since June 2022 when the collapse of a blockchain firm called Celsius sent shockwaves through the market.
James Van Straten from CryptoSlate perfectly summed up this whole fuss with a single tweet. He said, and I quote, “$2B in total, with $1.1B in loss.” Ouch! Looks like a lot of folks bought in between December 6th and December 13th, probably thinking they were geniuses for jumping on the Bitcoin train now that it was up 150% year-to-date. Well, as they say, hindsight is 20/20.
But let’s not forget about the Bitcoin volumes in terms of actual coins. They may not be as mind-boggling as the dollar figures, but they’re still quite noteworthy. The tally on December 12th marked the largest volume since July of this year. Remember those days when BTC/USD was flirting with the $30,000 mark? Ah, the memories!
So, what does all of this mean? Well, the brilliant minds at Glassnode are waving their on-chain indicators like flags at a football game, suggesting that these STHs might have had enough of this bull market party. They’re shouting, “Potential saturation of demand! Exhaustion is kicking in!” And one of their star players in this indicator battle is the Mayer Multiple.
Imagine the Mayer Multiple as a relationship status between Bitcoin’s current spot price and its 200-week moving average. And guess what? This Multiple is inching closer to 1.5, which, historically, has been a classic level of resistance during Bitcoin’s bull runs. It’s like encountering the red light district of the Bitcoin highway. Not “overbought,” mind you, but definitely a spot where things start to get a bit tricky.
Glassnode points out that the present value of the Mayer Multiple sits tantalizingly at 1.47, just a hair away from that resistance level. This level hasn’t been breached in a staggering 33.5 months, the longest period since the infamous 2013-2016 bear market. Can you smell the tension in the air? It’s like watching a tightrope walker perform without a net.
So here we are, my fellow digital asset investors, witnessing a moment of truth. Will Bitcoin defy the odds and break through the resistance to new heights? Or will it stumble and fall, bringing disappointment to those who dared to dream of a skyrocketing Bitcoin? Only time will tell.
But remember, in the world of cryptocurrencies, anything can happen. Strap on your seatbelts, folks, because the wild Bitcoin ride is far from over. And as always, stay informed, stay vigilant, and keep your sense of humor intact. After all, what’s life without a little laughter, even in the face of panicked BTC speculators?
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