Coinbase sees highest BTC selling volume since FTX collapse as Bitcoin drops

Quick Take

The recent retracement of Bitcoin from a local top of $49,100 to a low of $41,600, a drop of approximately 16%, has revealed notable market dynamics.

Patterns of capitulation appear to be emerging, with the largest Bitcoin transfer to exchanges at a loss from short-term holders – those who have held Bitcoin for less than 155 days – occurring on Jan. 12.

On Jan. 12, CryptoSlate reported a record-breaking amount of Bitcoin, equating to $2.271 billion in profit, being sent to exchanges by these short-term holders. However, as Bitcoin’s value plummeted on Friday, there was a significant shift, with a record-breaking short-term holder loss to exchanges of $4 billion, signaling a potential market sentiment shift.

Adding to this narrative, Coinbase’s BTCUSD pair, on the weekly timeframe, recorded its highest selling volume since November 2022, during the FTX collapse.

These factors, combined with the crypto fear and greed index returning to neutral after 28 days in greed out of the past 30, underscore the digital assets market’s highly volatile and unpredictable nature.

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