Bitcoin Short-Term Holders Panic: 65,200 BTC Sent To Exchanges At Loss

Michael Saylor, the chairman of Strategy, has dismissed claims that Wall Street has negatively impacted Bitcoin during its recent price crash. He stated that Bitcoin has become significantly less volatile, despite the current downturn, which contradicts the views of many crypto analysts who attribute the price drop to various market factors. Saylor's comments highlight a divergence in perspectives regarding Bitcoin's stability and future potential.

Crypto prices are experiencing volatility as Bitcoin has made a notable recovery, trading at $91,798 after previously dipping below the $90,000 mark. This resurgence comes after a significant drop that saw Bitcoin fall to around $90,700, marking a 25% decrease from its all-time high of over $126,000. Other cryptocurrencies like Ethereum, XRP, and Solana are also trading near critical support levels, indicating a tense market environment.

Solana has initiated a recovery wave from the $128 level, with its price currently consolidating above $135. The cryptocurrency has encountered resistance near the $142 mark, which it must surpass to continue its upward trajectory. A significant break above a bearish trend line at $137 has occurred, indicating potential for further gains if key resistance levels are cleared. The price movement aligns with broader trends observed in Bitcoin and Ethereum, suggesting a positive sentiment in the market.

On Tuesday, Bitcoin (BTC) fell below $90,000, reaching its lowest price in seven months, resulting in over $1 billion in liquidations across the crypto market within 24 hours. Analysts from the Bull Theory noted that this decline was due to structured institutional selling rather than typical market pressure. Despite Bitcoin's downturn, altcoins have remained stable, indicating a divergence in market behavior during this period of volatility.

XRP price has begun a new decline, falling below the $2.250 mark and currently facing resistance around the $2.32 pivot level. The price is trading under $2.250 and the 100-hourly Simple Moving Average, with a bearish trend line forming at $2.2250. Despite a brief recovery attempt above $2.280, XRP has struggled to maintain upward momentum, dropping below key support levels. Analysts warn that if XRP settles below $2.10, further declines may follow.

Bitcoin spot exchange-traded funds (ETFs) have experienced a significant drawdown of $3.29 billion from their all-time high, marking the second-largest decline since their inception. This downturn follows a wave of outflows, raising concerns about the stability of Bitcoin investments. Analyst Maartunn from CryptoQuant highlighted the impact of these withdrawals on the holdings of US Bitcoin ETFs, indicating a challenging environment for investors in the cryptocurrency market.

Tom Lee, co-founder of Fundstrat, predicts that Ethereum is nearing a cyclical low, suggesting that it may bottom this week. He attributes the current price drawdown to a broader correction in the cryptocurrency market that began after a liquidation event on October 10. Despite the downturn, Lee maintains that Ethereum's fundamental investment narrative remains strong, particularly as it serves as a neutral infrastructure for tokenization and stablecoins, which are gaining traction among institutional investors.

Bitcoin is showing signs of potential recovery following a period of significant price decline, attributed to a leverage purge and macroeconomic shifts. Analysts suggest that rising confidence among investors may lead to a rebound in Bitcoin's value. The cryptocurrency market has faced volatility, but improving liquidity conditions could support a recovery as the year progresses.