Bitcoin Selloff Deepens on Delayed Binance Hack Shock, Daily Realized Losses Hit $1.115 Billion
Summary
- Analysis showed that the Binance hack shock triggered large-scale stop-loss selling in the Bitcoin market, with 24-hour realized losses reaching $1.115 billion.
- Bitcoin fell to $77,553 as selling intensified in a market where liquidity had shrunk by about 23,284 BTC, adding to downward pressure on prices.
- The short-term holder realized price near $75,913 was identified as a key support level, and whether Bitcoin holds that line was highlighted as the main factor in determining whether post-hack selling pressure eases or a further correction follows.
Forecast Trend Report by Period
A wave of stop-loss selling swept through the Bitcoin market as the impact of the Binance hack hit with a delay, according to an analysis.
CryptoQuant contributor GugaOnChain wrote on Nov. 1 that Bitcoin investors recorded about $1.115 billion in realized losses over 24 hours on Oct. 31. He said the fallout from the $6.3 billion Binance hack on Oct. 29 turned into broad selling pressure two days later.
Bitcoin closed at $80,991 on Oct. 29, the day of the hack. Realized profit stood at about $464.09 million, while realized losses were about $300.66 million. Despite the large-scale hack, Bitcoin held above the $80,000 level, suggesting investors were betting on a rebound rather than further declines.
That mood changed on Oct. 31, when Bitcoin fell to $77,553. Over the same period, realized profit came to about $519.15 million, while realized losses jumped to $1.115 billion. GugaOnChain said investors who bought near the peak moved to crystallize losses and sell.
Shrinking market liquidity also added to the selling pressure. CryptoQuant's FEI Downside Alpha indicator showed about 23,284 BTC of liquidity left the order book at the time. With liquidity thin, concentrated sell orders intensified downward pressure on prices.
GugaOnChain identified the short-term holder realized price, or STH Realized Price, as a key support level. The metric edged down to $75,913 on Oct. 31 from $76,056 at the time of the hack. The indicator, which reflects the average cost basis of short-term holders, is used to gauge major support zones in the market.
He said the large realized losses may signal a transfer of coins from capitulating short-term investors to holders with a stronger willingness to keep positions for longer. Still, further confirmation is needed to determine whether that shift will lead to the formation of a market bottom.
GugaOnChain said the key variable for Bitcoin's next move will be whether it can hold near the short-term holder realized price of $75,913. Whether that level holds could determine if post-hack selling pressure eases or gives way to a deeper correction.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.