As Bitcoin Nears $100,000, Record Profit-Taking Turns to Loss-Taking as Prices Dip
Bitcoin (BTC) volatility is making waves, presenting investors with a clear choice: embrace the ups and downs or stay on the sidelines. While recent price swings have been dramatic, they remain more subdued compared to previous market cycles in terms of realized volatility and drawdowns.
The latest dip, from just under $100,000 to nearly $90,000—a correction of roughly 10%—has sparked increased market activity. According to Glassnode data, short-term holders, defined as those who have held BTC for less than 155 days, have moved $7.8 billion worth of bitcoin (approximately 83,000 BTC) to exchanges at a loss over the past two days.
This figure marks the largest notional loss-taking event on record. Historically, when short-term holders send $2 billion or more to exchanges at a loss, it often signals the formation of a local price bottom.
With Bitcoin currently trading just 7% below its all-time high, those who bought within the past week are among the few groups experiencing losses. Glassnode reports that roughly 678,000 BTC are currently sitting at a loss, highlighting the scale of the recent sell-off.
This loss-taking event comes on the heels of record profit-taking as Bitcoin approached $100,000, further underscoring the cyclical nature of the market. Investors continue to weigh their options, navigating the fine balance between potential gains and the risk of rapid price corrections.
