Not-So-Diamond-Hands: Short-Term Bitcoin Holders Capitulating

According to data provided by CryptoQuant, short-term holders are currently in the process of capitulating. A whopping 62,500 BTC recently moved to exchanges at a loss. 

Earlier today, the price of Bitcoin slipped below the $90,000 level for the first time since May, reaching an intraday low of $89,368.  

Actual diamond hands? 

Meanwhile, leading ETF analyst Eric Balchunas claims that BTC holders are more resilient than it might seem at first glance.  

Balchunas is noting that exchange-traded funds (ETFs) are still receiving about $7 billion per day in inflows.

You Might Also Like

That means that even though markets are pulling back, investors are continuing to put money into ETFs.

He compares this pullback to past events like the “Tariff Tantrum” (a market scare during the U.S.–China trade war).

Back then, ETFs saw a record amount of inflows in Q1, meaning investors poured in money despite volatility.

So, in his view, the current pullback is very small in comparison to the massive flows recorded by these products. 

When will the selling stop?

According to Katie Stockton, a technical analyst, the recent pullback is “meaningful” and could continue for some time, CNBC reports.

The flagship cryptocurrency is already oversold, meaning prices have fallen sharply and quickly, but there hasn’t been a clear signal yet that buyers are stepping in decisively.

Bitcoin’s decline is happening alongside a drop in the stock market, especially AI-related stocks.

Investors are moving away from riskier assets (like crypto and AI stocks) into safer investments because of economic uncertainty.

Bitcoin could fall further to $78,000–$80,000 before bottoming out, according to Stockton.