Bitcoin long-term holders ‘quietly capitalizing’ with drop to $109K
Analysts say that long-term Bitcoin holders have been accumulating during the recent market stress, which has seen the cryptocurrency dip just below $109,000.
Bitcoin markets recently experienced two major liquidation events, causing a cascade of forced selling from over-leveraged traders, but analysts say a distinct pattern has emerged.
“Overleveraged short-term traders were flushed out, long-term holders have been quietly capitalizing on the reset,” CryptoQuant analyst Amr Taha said on May 26.
They noted the first flush occurred when Bitcoin (BTC) fell below $111,000, and over $97 million in long positions were liquidated. As its price broke $109,000, another $88 million in longs were wiped out in the second wave.