In just a few tumultuous days, the Bitcoin (BTC) market witnessed staggering losses as the BTC price extended lower than $66,000. Moreover, the short-term BTC investors bore the brunt of the downturn. The Bitcoin price experienced a meteoric rise of approximately 50% since the beginning of 2024, however, the recent volatility sent shockwaves through the community.
Short-Term Bitcoin Investors Suffer $5.2 Billion Losses
Short-term holders (STHs), individuals owning Bitcoin for less than 155 days, found themselves reeling from the swift market correction. On April 1st and 2nd, Bitcoin faced consecutive dips, plummeting by 2.4% and 6% respectively. This shook investor confidence and triggered panic selling among new investors.
The cumulative effect of the recent Bitcoin price crash resulted in a staggering loss of over $5.2 billion. This equals to approximately 76,000 BTC, highlighting the inherent risks associated with short-term trading strategies amid Bitcoin’s extreme price fluctuations.
According to Glassnode data, the Bitcoin transfer volume plummeted from a high of nearly $4 billion to the rock bottom lately. During the latest Bitcoin price decline, less than $500 million worth of BTC was transferred in profit to crypto exchanges by short-term investors.
In addition, crypto analysts suggest that the Bitcoin price consolidation will continue and there’s not much hope of a strong rebound. Michaël van de Poppe, a crypto analyst, explained the period of consolidation for Bitcoin in his recent post on X. He wrote, “I don’t expect much upside to be happening, I do believe that we’re consolidating for the coming period”
Moreover, in the chart he attached, he mentioned that the BTC price will slump to $57,500 level if it fails to break the $70,300 mark. Furthermore, the analyst hinted at an impending rally in altcoins as Bitcoin loses momentum. However, he noted that the gaining momentum in altcoins wouldn’t be an immediate phenomena as he expects a ‘slow’ move.
Also Read: Robert Kiyosaki Doubles Down On Bitcoin As Fed Chair Admits Inflation Alarm
Bitcoin Price Crash Continues
Although Bitcoin rebounded above $66,000, the price decline continued. At press time, the BTC price was down by 0.41% to $66,248.73 on Thursday, April 4. Whilst, the crypto behemoth held a market cap of $1.30 trillion. During the crash, the 24-hour trade volume for BTC also plummeted 31.95% to $31.89 billion.
On the contrary, Bitcoin whales are trying to stabilize the situation amid the extreme price volatility. Crypto analyst Ali Martinez revealed that around 21,400 BTC worth $1.40 billion have been transferred to whale accumulation addresses lately. This could be a potential catalyst for the Bitcoin price rebound.
Also Read: Bitcoin Cash Sees Second Halving at Block 840,000, Price Dips
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
