Bitcoin Short-Term Holders Panic: 65,200 BTC Sent To Exchanges At Loss
Overview
Recent on-chain data indicates that Bitcoin short-term holders have transferred a significant amount of BTC to exchanges at a loss, signaling a potential capitulation wave within the network. This activity is particularly noteworthy as it reflects the behavior of investors who typically react to market volatility.
Bitcoin Short-Term Holders and Exchange Deposits
According to a post by a CryptoQuant community analyst, short-term holders (STHs) have recently engaged in a wave of underwater deposits to exchanges. STHs are defined as investors who acquired their Bitcoin within the past 155 days. This group is often seen as the more vulnerable segment of the market, known for selling their holdings when faced with market fluctuations.
The current market trend has been bearish, prompting STHs to react as expected. Typically, these holders transfer their coins to centralized exchanges when they plan to sell, making an increase in exchange deposits a potential indicator of a sell-off. During downtrends, loss selling is prevalent among STHs, as their cost basis is based on prices that have recently been higher.
In the last 24 hours, STHs have sent 65,200 BTC to exchanges, amounting to a significant financial loss due to the recent price decline. This influx of underwater tokens occurred as Bitcoin’s price dropped toward $89,000, following a crash to $94,000 the previous week.
Notably, on-chain analytics firm Glassnode has also provided insights into the capitulation of STHs. Their data shows that the 7-day exponential moving average (EMA) of the losses realized by STHs is currently at its highest level since November 2022. This trend indicates rising panic selling, with loss levels surpassing those observed during the last two significant lows of the current cycle.
Impact on the Crypto Market
- A significant number of short-term holders are selling at a loss, indicating heightened market anxiety.
- The recent wave of capitulation could affect market sentiment and lead to further volatility.
- The data from Glassnode suggests that current loss levels are unprecedented since the last bear market bottom, highlighting potential market instability.
- The behavior of STHs may influence long-term price trends, as selling pressure can impact overall market dynamics.
- Despite the current selling pressure, there has been a bounce back in Bitcoin’s price, indicating potential resilience in the market.
Updated: 11/19/2025, 6:34:42 AM
