Bitcoin Short-Term Holders Step Up Panic Selling as 80,000 BTC Flows to Binance
Summary
- Panic selling by short-term holders, or STHs, is accelerating, sending a large volume of Bitcoin to Binance and increasing selling pressure.
- Since the start of June, short-term holder inflows to Binance have exceeded 80,000 BTC on a seven-day moving average basis, representing about $5 billion in potential selling pressure.
- Historically, this kind of panic selling has rarely produced good investment results, and investors should take a cautious approach.
Forecast Trend Report by Period
Bitcoin short-term holders, or STHs, have stepped up panic selling during the recent price correction, sending a large volume of tokens to Binance and adding to selling pressure, according to an analysis.
CryptoQuant contributor Darkfost wrote on June 22 that short-term holders were hit hardest in the latest pullback and reacted most sharply. Their emotional response is now feeding heavy selling pressure.
Bitcoin has fallen more than 28% from its high since May, dropping from about $82,000 to the $60,000 level. As the decline deepened, market fear intensified and the Fear & Greed Index fell below 10.
That sentiment is also visible in Binance inflow data, Darkfost wrote. Since the start of June, the seven-day moving average of short-term holder inflows to Binance has risen above 80,000 BTC, equal to about $5 billion in potential selling pressure at current prices.
Even so, that is still below the level recorded in February, when Bitcoin tested the same $60,000 range. At the time, short-term holder inflows to Binance exceeded 100,000 BTC.
Short-term holders remain highly sensitive to market volatility and tend to make emotional trading decisions whenever price swings widen, Darkfost wrote.
Historically, that kind of panic selling has rarely produced good investment results, he added, urging investors to respond cautiously.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
