Summary:
Bitcoin price reaches three-month highs as speculators take profits.
7,127 BTC inflows to Binance, totaling $480 million.
Short-term holders show a Profit/Loss Ratio of 1.2, indicating profit dominance.
Supply availability is tightening, potentially leading to heightened volatility.
Investor sentiment remains fickle amidst fluctuating market conditions.
Bitcoin speculators are making massive profit-takings as the price of BTC surges to three-month highs. On October 14, short-term holders (STHs) of Bitcoin began cashing in on their investments, with inflows of 7,127 BTC (approximately $480 million) being sent to Binance, marking the largest influx since Bitcoin reached its all-time high of $73,800 in March.
Short-Term Holders Protecting Profits
The short-term holders, defined as those holding Bitcoin for 155 days or less, are strategically sealing in profits. Recent data from Glassnode highlights that these holders currently have a Profit/Loss Ratio of 1.2, indicating a dominance of profits and a potential shift in investor sentiment.
Heightened Volatility Ahead
Despite the bullish price action, investor sentiment remains fickle, with modest volatility leading to drastic changes in market exposure. Glassnode also notes that while demand for Bitcoin has decreased since March, the supply availability is also tightening. This divergence between supply and demand may precede a period of heightened volatility.
Market Conditions
The active supply of Bitcoin continues to compress, and historically, such tightness in supply has foreshadowed increased market volatility. The overall sentiment among short-term holders is positive, with low unrealized losses reported.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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