Over 99% of Bitcoin Losses Belong to Short Term Traders – HODLers Are Unmoved

• Traders moved over $5.2B Bitcoins ($BTC) in one houron August 5, dumping the coin to $49.5K.
• From over $850M losses, only $600K belong to long-term holders, as over 99% come from short-term investors.
• Many $BTC holders remain bullish and hope for a $100K $BTC milestone by the end of 2024.

Over 99% of Bitcoin ($BTC) losses during the $49.5K dump belong to short-term traders with accounts ranging from one day to three months old.

HODLers remain unmoved.

Most are betting on $BTC reaching $100K by the end of 2024, a 1.8x from the current $56.7K price. Bitcoin's market cap has increased by 2.08% in the last 24 hours, though its volume has dropped by 40%.

There's evidence for both a correction and an incoming bull run, but veteran traders are betting on the latter. What makes them so confident, and why are short-term traders easily falling to fear, uncertainty, and doubt (FUD)?

Let's discuss this news and see why over 99% of Bitcoin losses belong to short-term traders.

$850M Bitcoin Losses in One Hour - Significant FUD

August 5 was a dark day for Bitcoin, as investors moved over $5.2B in a single hour. From that, $850M were losses, meaning investors sold at a loss.

However, only $600K losses belong to long-term holders, with over 99% coming from accounts between one day and three months old - short-term traders.

New investors capitulated due to FUD, which further dumped $BTC's price, creating a vicious cycle that sent the coin spiraling down.

Source: CryptoQuant

Some investors, like BitMEX's former CEO Arthur Hayes,think a $40K dump is next, predicting another correction. He told his X followers that the current market recovery may be short-lived.

Hayes mentioned another dumping phase after the TradFi bodies surface instead of the leveraged puppets,' referring to the Japanese yen carry trade victims.

Why Aren't HODLers Moved by Bitcoin's Volatility?Most Bitcoin holders are personifying the HODL mantra these days - hold on for dear life. Even with a potential correction incoming, most aren't selling.

The post-halving effects are about to kick in, according to many analysts, and HODLers are betting everything on $BTC reaching $100K by the end of 2024.

Bitcoin options (speculative price derivatives) are also skyrocketing in popularity (call options are bullish), according to BasedMoney.

This shows that most Bitcoin traders remain bullish despite the current market conditions and FUD. Unfortunately, this doesn't guarantee a bull run - the correction might still be coming.

Our Verdict - Bitcoin Bulls Win Against the Bears. For Now...

The data is clear - $BTC HODLers and bulls have diamond hands and aren't cowed by the market's chaotic pressure-selling.

But will it be enough to send Bitcoin skyrocketing? We'll see that in the coming weeks and months, as the market stabilizes or crashes again.

References

• Bitcoin Investors Experience Significant Losses During Market Drop (Cointurk)
• Bitcoin Options Metrics (BasedMoney)
• Diamond hands: meaning in trading (Skilling)

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