Ramazan Eles 
Short-term Bitcoin (BTC) holders have begun selling off their assets in unprecedented amounts.
BTC has shown signs of strength since the start of the week, with nearly a 3% recovery. On-chain data caught attention, with CryptoQuant analyst IT Tech suggesting that short-term BTC holders are exiting the market. According to the analyst, these investors have been reducing their positions in BTC over the past two weeks.
Despite the retreat of short-term traders, long-term holders are continuing to accumulate Bitcoin. Data indicates that these long-term investors still have faith in the bull market.
Bitcoin wallets are changing hands Speculation that the Federal Reserve might lower interest rates due to U.S. inflation reports has positively impacted Bitcoin’s price. After dropping to $52,500, BTC bounced back to reclaim $58,000.
Despite this positive trend, Bitcoin miners selling their holdings and short-term BTC holders stepping away from the market raised concerns.
AMBCrypto highlighted this shift in wallet balances, stating:
“Short-term Bitcoin holders have a more immediate impact on price and contribute to volatile price swings through their selling activity.”
Julio Moreno, head of research at CryptoQuant, commented that during the ongoing negative correlation between Bitcoin and gold, risk-averse investors are on the rise. Moreno’s analysis suggests that more people are moving toward holding less volatile assets like gold, while also pointing to outflows in the U.S. stock markets. The weakening market conditions have largely been attributed to short-term investors.
Short-term Bitcoin holders are selling at a loss. Traders who have held BTC for 155 days or less are reducing their positions, fearing further price declines. Meanwhile, long-term Bitcoin holders continue to buy up the asset.
Bitcoin price outlook Bitcoin’s price remains in a bearish trend, staying below the 50-day and 100-day Simple Moving Averages (SMA).
The 50-day SMA, positioned around the $60,000 level, has acted as resistance for BTC. AMBCrypto noted, “If the price reaches this level, short-term sentiment could turn bullish.” However, they also pointed out that for a longer-lasting rally, BTC would need to reclaim $63,000. Despite recent gains, the Bitcoin Fear and Greed Index sitting at 31 suggests that fear still grips the market, indicating weakening demand.
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