Bitcoin News Today: Short-Term Holders Drive Bitcoin 3% Drop Amid $200M Liquidations

Bitcoin's recent price decline has been largely driven by short-term holders, according to on-chain analytics from Glassnode. Over the past 24 hours, the cryptocurrency dropped more than 3%, falling below $115,000 and triggering over $200 million in market liquidations. The majority of the $21.34 billion in BTC traded during this period—85.5%—was attributed to investors who had acquired their coins in the last few months, indicating a shift in selling pressure from newer participants rather than long-term or institutional investors [1].

Short-term holders have been offloading their positions at a loss amid heightened price volatility, with reports describing a noticeable "selling spree" as traders react to downward price movements [2]. This has intensified the recent correction, particularly as Bitcoin moved below a critical price threshold [3].

The divergence in performance between short-term and long-term holders is evident in the MVRV (Market Value to Realized Value) ratio, which currently stands at 2.3×. This suggests that long-term holders are up by an average of 230%, while short-term holders are only up 13%, highlighting the stronger resilience of long-term capital in the Bitcoin market [5].

Despite the sell-off, the broader Bitcoin market remains in a profitable state. Glassnode data shows that the Percent Supply in Profit has stayed above 90% for more than a month, indicating that over 90% of the circulating Bitcoin supply is still in a net gain position [1]. This implies that while short-term holders are exiting at a loss, the overall market is not yet facing a widespread crisis.

Analysts have noted that institutional inflows are starting to counterbalance the selling pressure, as larger players step in to provide liquidity and stabilize the market [6]. This shift may signal a potential bottoming process, with some observers suggesting that the current correction is more of a technical adjustment than a structural breakdown [7].

Market participants are advised to closely monitor both on-chain activity and macroeconomic indicators for further clues about Bitcoin’s next major price direction. With more than 90% of the circulating supply still in profit, the market's underlying strength remains a key factor in determining the trajectory of the price action.

Source:

[1] Short-term holders drove Bitcoin price decline but market remains profitable. (https://cryptoslate.com/insights/short-term-holders-drove-bitcoin-price-decline-but-market-remains-profitable/)

[2] Bitcoin Short-Term Holders Are Selling At A Loss Amid ... (https://bitcoinist.com/bitcoin-sths-are-selling-at-a-loss/)

[3] Bitcoin Price Drop: Urgent Plunge Below $115000 Sparks ... (https://www.bitget.com/news/detail/12560604890276)

[5] Bitcoin's Velocity and Its Implications for Future Price Trends (https://www.ainvest.com/news/bitcoin-velocity-implications-future-price-trends-2508/)

[6] Bitcoin Institutional Inflows Replace Whale Liquidity As ... (https://www.mitrade.com/insights/news/live-news/article-3-1003119-20250801)

[7] If Billionaires Are Buying Bitcoin Hand Over Fist, Why Isn't ... (https://www.nasdaq.com/articles/if-billionaires-are-buying-bitcoin-hand-over-fist-why-isnt-price-bitcoin-soaring-0)