$5.7 Billion transferred to exchanges: Will Bitcoin drop below $110k?

Massive Bitcoin purge on exchange platforms

In just two days, the Bitcoin market has experienced an unprecedented movement: nearly $5.69 billion worth of BTC has been transferred to exchanges, primarily by short-term investors. This wave of capitulation reflects growing distrust among some holders, while potentially paving the way for a rebound for more seasoned investors.

Revealing on-chain znalysis: Short-term holders selling massively

According to data from analyst Maartunn, 50,026 BTC approximately $5.69 billion – have been sent to exchange platforms over the past two days. These massive transfers primarily come from “short-term holders,” a category of investors more sensitive to volatility.

“One of the heaviest capitulation movements in recent weeks,” notes Maartunn.

This phenomenon shows a clear capitulation of short-term holders, selling at losses out of panic or to limit damage. The STH SOPR has dropped into the red zone for the first time since June 23, during the Iran conflict.

Direct impact on prices and liquidations

Since the beginning of the week, the cryptocurrency market has experienced a marked decline. More than $441 million has been liquidated in 24 hours, affecting all major digital assets, including Bitcoin, which fell below the $112,600 mark.

This pullback comes after a historic peak of $124,533 recorded on August 14, driven by massive institutional purchases, notably from MicroStrategy.

An opportunity for Bitcoin investors?

Some analysts, including Maartunn, suggest that this episode of selling at a loss could paradoxically constitute a buy signal for savvy investors. When crypto holders capitulate en masse, it often forms a potential floor on which bullish recoveries can build.

However, a caveat remains: if the market fails to rebound quickly, a phase of stagnation or prolonged correction – comparable to that observed between February and May could set in.

Especially since important announcements are coming this week and next week, and the September FOMC meetings are also eagerly anticipated.

In conclusion, $5.7 billion in BTC was moved to exchanges at a loss, signaling a major market shift.
This massive capitulation from short-term holders shows both investor distrust and rebound potential for experienced traders.

In any case, Bitcoin remains in the spotlight. Even if a prolonged correction is more likely, investors should remain attentive to economic announcements in the coming weeks.

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