This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Bitcoin short-term holders have reportedly sold nearly $4.5 billion worth of BTC in the past four days, marking the largest profit-taking event since November 2021. Short-term holders are investors who acquired Bitcoin within the last 155 days and are known for their tendency to react to market FUD (fear, uncertainty, and doubt) or FOMO (fear of missing out). In contrast, long-term holders are more resolute and rarely sell, even during periods of high profits or losses. The recent surge in Bitcoin’s price, which has breached the $41,000 level, likely prompted short-term holders to cash in on their gains. One way to track their selling activity is through the total transfer volume they send to centralized exchanges, as exchanges are where holders deposit their Bitcoin when they want to exit the market. A chart displaying the trend in this indicator over the past few years shows a significant increase in transfer volume from short-term holders to exchanges during the recent rally, indicating a rush to take profits. Analyst James V. Straten estimates that short-term holders have made deposits totaling around $4.5 billion in the last four days, with $1.5 billion deposited yesterday alone. Despite the large selloff, Bitcoin has managed to maintain its price and push towards higher levels, suggesting sufficient demand to absorb the selling pressure. Currently, Bitcoin is hovering around $41,900 and is expected to retest the $42,000 level.