By: Isha Das
Recent fluctuations in Bitcoin's value have triggered significant market movements, indicating the delicate nature of the cryptocurrency market. In response to Bitcoin’s short dip below $42,000, short-term holders (STHs) transferred $2 billion worth of the cryptocurrency to exchanges, suggesting a possible sell-off. It was the second-largest transfer volume recorded in the year, indicating the volatility stemming from minor shifts in price.
In another major event, on Christmas Eve, a substantial number of older Bitcoins reentered circulation, with the revived supply reaching significant levels. The total includes coins that have been inactive for three to five years, which were dispatched to exchanges. The fourth-highest volume this year was observed with approximately 9,000 Bitcoins, and around 8,000 Bitcoins from five-year inactive supply, amounting to nearly $750 million.
These heavy Bitcoin transfers display how sensitive the market is to fluctuations in Bitcoin's value. A significant amount of these transactions occurred in the fourth quarter, presumably as investors secure year-end profits, indicating the calculated strategies employed by Bitcoin holders.
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