Bitcoin – Here’s what the ‘risky’ market’s short-term holders are upto right now

Bitcoin [BTC] could record a case of further downside on the charts soon. This was underlined by the market activity, with the same suggesting that investors share a bearish outlook right now.

This shift can be reflected in Bitcoin’s price performance too. At the time of writing, it was trading at around $71,000 – Down 44% decline from its all-time high. At the same time, market sentiment slipped into extreme fear too while liquidity across the broader crypto market fell.

For now, the risk of a deeper pullback remains firmly in play. Investor exits are accelerating, order books show clear seller dominance, and there are few signs that downside momentum may be easing.

Short-term holders amplify sell pressure

Short-term holders are acting in line with historical patterns during periods of heightened uncertainty, but the scale of this selling raises Bitcoin’s capitulation risk considerably.

Over the last 24 hours, these investors recorded their largest single inflows to centralized exchanges – Moving 60,000 BTC, worth approximately $4.27 billion, at the time of writing.

More notably, much of this Bitcoin was transferred at a loss. This could be a sign of weakening conviction among short-term participants, while also suggesting that the prevailing distribution phase may extend further.

When confidence among short-term holders deteriorates—especially given their dominance in daily trading activity—Bitcoin becomes increasingly exposed to sharp downside moves.

Capitulation typically describes a phase where the price experiences a rapid and steep decline. Something like this often unfolds over one or two candlesticks as sellers overwhelm remaining demand.

Miners add to bearish momentum

The ongoing sell-off is not confined to short-term holders alone. Miners are also contributing to the growing bearish pressure.

Miners play a central role in maintaining Bitcoin’s network by validating transactions and earning block rewards. While a portion of these rewards is routinely sold to cover operating costs, recent data might hint at a broader loss of confidence.

Over the last three days, conditions shifted decisively bearish too. The Miner Reserve, for instance, dropped to roughly 1.80 million BTC, signaling a hike in cash-outs as miners reassessed near-term market prospects.

This behavior can be reinforced by the Miner Selling Power too. This metric measures how aggressively miners sell relative to their total holdings. It surged to negative 5.4, confirming that miner outflows have been elevated, compared to the overall supply.

If this trend persists, it could place sustained downward pressure on the price and further weaken Bitcoin’s short-term outlook.

Elevated selling dominates broader market

Finally, on a broader level, Bitcoin’s exchange netflows have continued to climb over recent days. A hike in exchange reserves may be a sign that more Bitcoin is being positioned for potential selling – A pattern that has historically preceded extended bearish phases.

In practical terms, a sharp uptick in Bitcoin held on exchanges means more supply is readily available to be sold on the market.

If this trend continues, it would compound existing bearish sentiment, particularly as demand remains thin. Under these conditions, Bitcoin might just face a sustained risk of further downside in the near term.

Final Thoughts

• Short-term holders have been selling aggressively, with roughly 60,000 BTC offloaded so far – Marking the largest single-day sell-off in the current phase.
• Miners are also adding to the pressure, as outflows increasingly outweigh incoming supply.