Recent on-chain data shared by CryptoQuant reveals a notable shift in Bitcoin market dynamics following two sharp liquidation events triggered by price drops below key psychological levels.
Liquidations Erupt as BTC Falls Below $111K
Bitcoin’s fall below the $111,000 mark sparked a chain reaction. According to the information, over $97 million in long positions were liquidated near the $110.9K level. A second wave struck as BTC breached $109,000, erasing another $88 million in leveraged longs on Binance.
These events marked one of the largest long-liquidation clusters in recent weeks, reflecting aggressive risk-taking by short-term traders — and the consequences of it.
Long-Term Holders Step In
While short-term traders were wiped out, CryptoQuant’s STH/LTH Net Position Realized Cap chart shows long-term holders (LTHs) took advantage of the volatility. LTH realized cap has surged past $28 billion — the highest since April.
This uptick signals strategic accumulation. Unlike short-term market participants reacting to price swings, long-term investors are using dips as entry points, reinforcing their positions during forced selling phases.
Conclusion: Smart Money Moves In
As overleveraged positions were flushed out, long-term Bitcoin holders quietly accumulated, according to CryptoQuant’s data. Their confidence in BTC’s long-term value proposition stands in stark contrast to the volatility-driven panic among short-term traders — and it may be laying the groundwork for Bitcoin’s next leg up.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/bitcoin-liquidations-flush-out-late-longs-as-long-term-holders-accumulate/