As Bitcoin’s price dipped below $70,000, many short-term holders (STHs) sold off their holdings, causing a stir in the market. New data from on-chain analytics platform Glassnode shows that on October 31 alone, STHs sold a massive 54,000 BTC, marking the largest sell-off since April.
The recent price reversal near all-time highs left opportunistic traders scrambling. Glassnode data, which tracks BTC transfers from STH wallets to exchanges, reveals that 54,352 BTC — valued at roughly $3.76 billion — moved to exchanges on this single day.
STHs are wallets that have held BTC for up to 155 days, often reacting to market volatility. Unlike long-term holders (LTHs), who are more likely to hold BTC for months or even years, STHs tend to respond more swiftly to price swings. When volatility rises, so does the STH urge to sell, as their aggregate profit margins thin. According to Glassnode, the STH spent output profit ratio (SOPR) has fallen close to 1.01, just above the breakeven point of 1. This is a drop from 1.04 seen just a few days prior on October 29, indicating mounting selling pressure.
Glassnode also highlighted that a large chunk of BTC sent to exchanges on October 31 was from STHs selling at a loss.
Bitcoin Risks “Deviation” Above $70,000
Data from CoinGlass suggests that Bitcoin’s next critical support level lies around $68,000. Order book liquidity shows a renewed concentration of selling interest between the current spot price and recent highs.
Opinions on the recent market moves are divided. While some analysts worry that the push above $73,000 could represent a temporary “deviation” rather than a sustained breakout, others see similarities to price patterns in previous halving cycles.
One X account, HornHairs, noted a pattern of “derisking” shortly before the U.S. elections in both 2016 and 2020, cautioning, “Price then went on to never retest the lows set the week before the election ever again. Be careful what you sell here.”
Traders are also eyeing this week’s key U.S. economic data, with the nonfarm payrolls report due on November 1. The outcome could have significant implications for risk assets, including Bitcoin.
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