TLDR
- Short-term Bitcoin holders sold over 26,000 BTC ($2.4 billion) as price dropped below $95,000
- Price fell from recent $100,000 high on January 8th
- CryptoQuant data shows short-term holders (under 155 days) moved coins to exchanges at a loss
- Alphractal analysis indicates decreasing accumulation trends since December 5th
- Market sees shift from accumulation to liquidation among short-term holders
Bitcoin experienced a substantial price decline on January 8, 2025, dropping below $95,000 after briefly touching the $100,000 mark earlier in the week. The movement coincides with a massive sell-off by short-term holders, who moved more than 26,000 BTC valued at approximately $2.4 billion to exchanges.
Data from market intelligence platform CryptoQuant reveals that short-term holders, defined as investors who have held Bitcoin for less than 155 days, were the primary drivers behind this market movement. These investors chose to move their holdings to exchanges at a loss, contributing to increased selling pressure in the market.
The timing of this sell-off aligns with Bitcoin’s retreat from its recent approach toward the $100,000 psychological barrier, a price point that has generated considerable attention from market participants and observers alike.
Blockchain analytics firm Alphractal’s research provides additional context to this market behavior. Their analysis shows a clear shift in short-term holder behavior, with their “Accumulation vs. Distribution” metric indicating a growing preference for selling rather than acquiring more Bitcoin.
Short-Term Holders Start Distributing Their BTC — Not a Good Sign if It Continues!
The daily change in the “Accumulation vs. Distribution of STH” metric clearly highlights the inflow and outflow of Bitcoin from addresses held by investors for up to approximately 155 days. We’re… pic.twitter.com/z4OcpfaXuF
— Alphractal (@Alphractal) January 7, 2025
This change in investor behavior represents a departure from the accumulation trends observed throughout the latter part of 2024. According to Alphractal’s data, the decline in accumulation rates began on December 5, 2024, marking the start of a new market phase.
The movement of coins to exchanges has been particularly notable, with CryptoQuant’s data showing a sharp spike in exchange inflows coinciding with the price decline. This pattern suggests that many short-term holders decided to secure profits or minimize losses as the market showed signs of weakness.
Market data indicates that the selling pressure has been concentrated among addresses that acquired their Bitcoin holdings during the price uptrend of late 2024. These investors appear to be taking advantage of the still-elevated prices to realize gains, despite the recent pullback.
The volume of Bitcoin moving to exchanges represents one of the largest single-day movements in recent months, highlighting the scale of this selling event. Exchange flow data shows that multiple large transactions occurred within a relatively short time frame.
On-chain metrics reveal that the majority of these transactions originated from addresses that had accumulated Bitcoin during the fourth quarter of 2024, suggesting that newer market participants were more likely to sell during this period.
The selling activity has occurred across multiple major exchanges, indicating a broad-based movement rather than an isolated event on a single platform. This widespread distribution of selling pressure suggests a coordinated response to market conditions rather than a localized phenomenon.
Technical analysis of the price action shows that Bitcoin found initial support near the $95,000 level, where buying pressure emerged to stabilize the market. This price point aligns with previous resistance levels from earlier in the month.
Trading volume during this period increased markedly, with spot market activity showing higher-than-average participation. The elevated volume suggests strong market engagement during the price movement, lending weight to the importance of this price level.
Order book data from major exchanges reveals that substantial buy orders have accumulated in the $93,000 to $95,000 range, potentially providing a cushion against further immediate downside pressure.
The most recent data shows that short-term holder selling has begun to slow, with exchange inflows returning to more normal levels. However, the overall trend in accumulation remains weaker compared to previous months.
Real-time market data indicates that trading activity has started to normalize, with volatility measures returning to levels more consistent with typical market conditions. The most recent pricing data shows Bitcoin trading at $94,800 as of January 9, 2025, at 8:30 AM UTC.
