Bitcoin experienced a downward trend at the start of August. Analysis suggests this price dip originated from activity in the immediate buying and selling market, rather than widespread forced closures of leveraged positions.
Over the last day, the leading cryptocurrency saw a decrease of over 3%, falling below $115,000. This price movement resulted in market liquidations totaling more than $200 million.
Glassnode‘s analytical data indicates that recent selling pressure during this period predominantly came from investors who had held their Bitcoin for a shorter duration.
Out of the $21.34 billion worth of BTC that was traded during this period, a significant 85.5%, equating to roughly $18.24 billion, came from investors who had purchased their Bitcoin within the preceding months. Conversely, long-term holders accounted for a smaller 14.5%, or $3.10 billion, of the trading volume.
This trend implies that the recent decrease in price was primarily influenced by newer participants in the market reacting to weakening prices, rather than a sell-off by larger institutions or investors with longer holding periods.
Despite this selling activity, the overall market remains profitable for many investors.
According to Glassnode data, the “Percent Supply in Profit,” which reflects the proportion of BTC in circulation that is currently held at a profit, has remained above 90% for over a month. While this suggests widespread unrealized profits, it also indicates increasing incentive for holders to realize those gains.
