BTC Price Flash Crash: Are Long-Term Holders Selling the Dip to Fuel the Bull Market?
Original Title: "BTC Flash Crash Needle Insertion, LTH Profit Taking a Bull Market 'Standard'?"
Original Source: BitpushNews
Bitpush data shows that after hitting a historical high of nearly $104,000 yesterday, Bitcoin experienced a sudden and sharp plunge around 6:30 AM Beijing time on December 6, plummeting to around $91,000 in a few minutes, leading to a widespread market liquidation. Data shows that in the past 24 hours, nearly 210,000 investors were liquidated, totaling over $1 billion, with long positions predominating. At the time of writing, the BTC price has rebounded to above $97,000. This needle insertion did not affect other altcoins.

Analyst: LTH Profit Taking Not Yet at Extreme Levels
CryptoQuant's data shows that after breaking the $100,000 mark, long-term holders (LTH) began to take profits. The Long-Term Holder Spent Output Profit Ratio (LTH-SOPR) indicator shows that the Bitcoin sold by long-term holders has realized four times the profit from their original purchase price. Julio Moreno, CryptoQuant's research director, pointed out: "After Bitcoin broke the $100,000 mark, long-term Bitcoin holders (LTH) started to take profits, which is a normal phenomenon during a Bitcoin bull market, and profit-taking has not yet reached extreme levels."

However, analysts believe that profit-taking is just one factor leading to Bitcoin's fall. Owen Lau, Executive Director and Senior Analyst at Oberheim, had previously warned investors to be cautious when Bitcoin reached $100,000, as profit-taking scenarios might arise. In addition, market concerns about macroeconomic conditions, regulatory policies, and other factors could also exacerbate market volatility.
Focus on Non-Farm Payrolls Data
Investors are currently focusing on the upcoming release of US non-farm payroll data on December 6 in Eastern Time, as this data could have a significant impact on the Fed's monetary policy, which may in turn affect the Bitcoin market.
Jag Kooner, Derivatives Director at Bitfinex, stated that the market is generally expecting positive trends in November's non-farm payroll data. If the data shows strength, the Fed may slow down its rate cut pace, or even delay rate cuts. This would lead to a stronger US dollar, exerting a certain dampening effect on risk assets, including Bitcoin.
However, the current market still leans towards a rate cut expectation for the Federal Reserve's December meeting. Data from the Chicago Mercantile Exchange shows that the market widely believes the Fed will cut interest rates by 25 basis points in December with a probability of over 70%. Lower rates typically stimulate market liquidity and provide support for risk assets, thus having a positive impact on Bitcoin prices.
In addition to monetary policy factors, institutional investor interest and political sentiment continue to support Bitcoin's rise. WeFi Co-Founder Maksym Sakharov emphasized that institutional investors have been steadily accumulating Bitcoin, with many believing that as global trade prepares for the impact of Donald Trump's proposed tariffs, Bitcoin can serve as a hedge against inflation and economic uncertainty.
Sakharov stated, "Institutional accumulation remains a key driving factor for Bitcoin price momentum. Additionally, the optimistic sentiment surrounding the Trump administration's support for cryptocurrency policies has boosted market confidence, and the combination of institutional purchases and favorable political sentiment has lifted the price of the coin."
21Shares' Cryptocurrency Research Strategist Matt Mena believes that the next key target for BTC is $110,000, as Deribit data shows that most of the call option contract volume on January 31, 2025, is concentrated at that price level.
You may also like

Make Probability an Asset: A Forward-Looking Perspective on Predictive Market Agents

Consumer application issues

Arthur Hayes: The flames of war in the Middle East rise, Bitcoin is bullish

Legendary investor Naval: In the AI era, traditional software engineers have no value?

More absurd than knowing about the war in advance is knowing in advance about the assassination of Soleimani

Key Market Insights on March 2nd, how much did you miss?

How to systematically track high-performing addresses on Polymarket?

From Stanford Lab to Silicon Valley Streets: How OpenMind is Solving the "Last Mile" Problem of the Machine Economy?

PlanX: Reconstructing On-Chain Execution with AI, Moving Towards a New Paradigm

US Judge Allows Binance Unregistered Token Lawsuit to Advance
Key Takeaways: A federal judge in Manhattan dismissed Binance’s petition to resolve a securities lawsuit through private arbitration,…

Crypto VC Paradigm Plans $1.5 Billion Expansion into AI and Robotics
Key Takeaways: Paradigm is setting up a new $1.5 billion fund to explore AI, robotics, and other emerging…

Ethereum Smart Accounts Set to Launch Within a Year, According to Vitalik Buterin
Key Takeaways: Ethereum’s “account abstraction” or smart accounts might be introduced in the coming year through the Hegota…

Bitcoin Recovers After Iran Conflict Shocks Market, Reverses $5K Fall in Just 24 Hours
Key Takeaways: Bitcoin dropped to approximately $63,000 amid tensions but rebounded to $68,200 within a day. Volatility led…

Former Mt. Gox CEO Suggests Hardfork to Retrieve $5.2 Billion in Bitcoin
Key Takeaways: Mark Karpelès, former CEO of Mt. Gox, proposes a Bitcoin network hard fork to access nearly…

South Korea National Tax Service’s Mistake Resulted in $4.8 Million Crypto Loss
Key Takeaways South Korea’s National Tax Service inadvertently exposed private keys, resulting in a $4.8 million crypto loss.…

Morgan Stanley Seeks National Trust Charter for Cryptocurrency Custody
Key Takeaways: Morgan Stanley has initiated a significant step toward digital asset management by applying for a national…

Solana Price Outlook: Major ETF Inflows Hint at Institutional Moves
Key Takeaways: Solana has experienced substantial ETF inflows, prompting speculation about institutional buy-in. On February 25, Solana recorded…

Bitcoin Price Prediction: Wikipedia Founder Warns BTC Could Plunge Below $10K — Should Investors Worry?
Key Takeaways Wikipedia co-founder Jimmy Wales warns Bitcoin might decline to below $10,000, prompting a bearish outlook. Wales…