• Bitcoin (BTC) sees minimal realized loss as it maintains its support range of $25,000 and $26,000 amidst SEC drama.
• Analyses of CryptoQuant’s recent charts revealed that the sell-off volume of BTC was primarily influenced by day traders, swing traders, and some long-term holders.
• Long-term holders have generally held onto their coins but short-term holders were the primary drivers behind the recent fluctuations in BTC’s price.
Impact of SEC Drama on Bitcoin Price
The recent drama involving two major exchanges and certain tokens in the Security and Exchange Commission (SEC) suit has caused quite a stir, even though Bitcoin (BTC) itself was not directly involved. Nevertheless, Bitcoin’s response to this news has been noteworthy.
Long Term Holders Selling
3–6-month BTC holders join day and swing traders in sell-offs amidst SEC drama. Analyses of CryptoQuant’s recent charts revealed that the sell-off volume of BTC was primarily influenced by day traders, swing traders, and some long-term holders. A closer examination of the Exchange Inflow Spent Output Age Bands provided interesting insights. On June 4, there was a modest increase in BTC inflow within the 0–1-day age band, with over 14,000 BTC entering the exchanges; however June 5 witnessed a significant spike in the inflow from long-term holders in the three to six-month age band. This sudden surge saw over 3,000 BTC deposited indicating an uncommon sell off by this particular category of long term holders. The six and 12 month holders seemed relatively calm in their sales but June 7 saw an unprecedented flow of over 1 000 BTC marking highest level since March
Realized Losses Stay Minimal
Bitcoin remains steady as the drama unfolds despite some long term holder selling off their holdings due to this news which has impacted other important metrics and current market prices for Bitcoin (BTC). Despite this sell off by certain groups of investors there have been minimal realized losses as it continues to maintain its support range between $25 000 USD – $26 000 USD displaying resilience in a volatile market situation.
Short Term Traders Drive Fluctuations
Short term traders seem to be driving most of these fluctuations according to CryptoQuant’s exchange inflow spent output value bands which indicate how much bitcoin is being sold by various types of traders ranging from 1 – 10 000+. It is clear from these observations that short term holders are capable or driving up prices while sustaining them at moderate levels thus making them primary drivers behind these situations causing sudden price changes currently seen for Bitcoin (BTC).
Conclusion
Overall it can be concluded that crypto markets are still resilient enough for investors who can handle volatility or hold on for longer terms despite such events taking place as evidenced through minimal realized losses during this period despite large scale selling taking place among certain groups or investors mainly short term ones who are capable or pushing prices up rapidly before quickly cooling them back down again while still holding onto previous gains made during these periods thus making them ultimately responsible for current price fluctuations seen with Bitcoin (BTC).