30s Summary

Bitcoin’s market value drop below $70,000 spooked short-term investors who sold off 54,352 Bitcoins, equating to about $3.76 billion. This reactive trading is characteristic of short-term holders, in contrast to long-term investors who persist despite price fluctuations. The Bitcoin market is assessing its risk-profit ratio above $70,000, with upcoming interest potentially around $68,000. Traders are undecided on the next move based on recent downturns, and historical patterns suggest prices do not typically drop below the prior week’s low before an election.

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Bitcoin investors were spooked when the market value dropped below $70,000. On October 31, the number of short-term holders (those who don’t hold onto their bitcoins for very long) dropped 54,000, the biggest plunge since April last year. When the price of Bitcoin fell from its recent peak, many of these short-term holders didn’t hesitate to sell their investments. The data firm Glassnode indicated that these investors, who often behave spontaneously, lost their nerve when the Bitcoin price started to fall. They sold off a whopping 54,352 bitcoins, totaling around $3.76 billion.

Wallets with Bitcoin balances held less than 155 days (those belonging to short-term holders) typically show this reactive trade behavior. It’s a stark contrast to the long-term holders who don’t rush to sell, even when the Bitcoin price fluctuates; instead, they hold onto their coins for months or years undeterred. A volatile Bitcoin price typically drives short-term holders to sell, and as their return on investment shrinks, they’re likely more eager to get rid of their possessions. Thing is, many of them sold off bitcoins at a loss on October 31.

If we look at the Bitcoin market as a whole, it seems the market is still weighing its risk versus potential profit above the $70,000 mark. The website CoinGlass, which checks the liquidity of the Bitcoin market, shows that the upcoming interest will probably circle around $68,000. It also mentioned that Bitcoin traders are divided on what their next move should be based on these recent drops. Pre-election patterns from previous election years have shown that prices typically don’t dip below the lowest price the week before the election.

Bear in mind everyone, trading and investing come with their own risk. It’s crucial to do your homework before making a decision.

Source: Cointelegraph