Bitcoin Is Down, But Are There Any Sellers Left?
Andre Dragosch, Head of Research at Bitwise Europe, notes that Bitcoin’s blockchain data points to a sharp decline in selling pressure after the latest market dip.
Following Bitcoin’s drop below $89,000, short-term holders offloaded over $3.9 billion worth of assets on exchanges, potentially incurring losses exceeding $1.8 billion. This sell-off ranks among the most significant in Bitcoin’s history, comparable to the market shake-up triggered by the unwinding of the yen carry trade, which sent BTC below $49,000.
The Crypto Asset Sentiment Index just flashed a massive contrarian buy signal for Bitcoin. Widespread bearishness across flows, on-chain data, and derivatives suggests that downside risks are fairly limited. At these prices, the risk-reward outlook appears quite favorable,
Dragos observed.
The crypto market is in turmoil—over $320 billion has been wiped out in just 24 hours, dragging total losses since December 2024 to a staggering $1 trillion. According to CoinMarketCap, the market now stands at $2.7 trillion. Meanwhile, Bitcoin’s dominance is growing, with the altseason index crashing to 25 points, and trader sentiment sinking to its lowest level in nine months at just 26 points.
Futures traders have been hit hard too. Data from CoinGlass shows that more than $1.5 billion in positions were liquidated, with long-position holders suffering one of their worst single-day losses since August 2024.
Read on: Bitcoin Crashes Below $87K—What’s Triggering the Crypto Market Sell-Off?
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