Bitcoin

when

Drops

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Glassnode data recently analyzed the intensity of Bitcoin LTHs sell-side pressure.</li> 
 <li>BTC is currently trading above $92,000.</li> 
</ul> 
<p>After reaching a new ATH above $99,000 on November 22, BTC began a descendant trajectory on November 25.</p> 
<p>At the moment of writing this article, BTC is trading above $92,000, down by 5% in the last 24 hours.</p> 
<figure id="attachment_53952" aria-describedby="caption-attachment-53952" style="width: 100%" class="wp-caption alignnone">
 <a href="https://crypto.ro/en/wp-content/uploads/2024/11/BTC_1D_graph_coinmarketcap-2024-11-26T162249.259.jpeg"><img loading="lazy" decoding="async" class="wp-image-53952 size-full" src="https://crypto.ro/en/wp-content/uploads/2024/11/BTC_1D_graph_coinmarketcap-2024-11-26T162249.259.jpeg" alt="BTC price in USD today" width="1200" height="800" title="Bitcoin Price Drops To $92K Ahead of Thanksgiving Day in the US 27" srcset="https://crypto.ro/en/wp-content/uploads/2024/11/BTC_1D_graph_coinmarketcap-2024-11-26T162249.259.jpeg 1200w, https://crypto.ro/en/wp-content/uploads/2024/11/BTC_1D_graph_coinmarketcap-2024-11-26T162249.259-300x200.jpeg 300w, https://crypto.ro/en/wp-content/uploads/2024/11/BTC_1D_graph_coinmarketcap-2024-11-26T162249.259-1024x683.jpeg 1024w, https://crypto.ro/en/wp-content/uploads/2024/11/BTC_1D_graph_coinmarketcap-2024-11-26T162249.259-768x512.jpeg 768w, https://crypto.ro/en/wp-content/uploads/2024/11/BTC_1D_graph_coinmarketcap-2024-11-26T162249.259-750x500.jpeg 750w, https://crypto.ro/en/wp-content/uploads/2024/11/BTC_1D_graph_coinmarketcap-2024-11-26T162249.259-1140x760.jpeg 1140w" sizes="(max-width: 1200px) 100vw, 1200px"></a>
 <figcaption id="caption-attachment-53952" class="wp-caption-text">
  BTC price in USD today
 </figcaption>
</figure> 
<p>BTC’s recent price drop was triggered by long-term holders taking profits, and LTHs sell-side pressure beginning to outpace the ETF net inflows among others.</p> 
<h2 id="factors-leading-to-btc-price-drops">Factors Leading to BTC Price Drops</h2> 
<p>Yesterday, a New York Times report revealed that the Biden Administration has discussed the idea of handing nuclear weapons over to Ukraine as it gets ready to leave office.</p> 
<figure style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" src="https://pbs.twimg.com/media/GdPXaw2WQAAgLpY?format=jpg&amp;name=medium" alt="New York Times notes" width="980" height="398" title="Bitcoin Price Drops To $92K Ahead of Thanksgiving Day in the US 28">
 <figcaption class="wp-caption-text">
  New York Times notes
 </figcaption>
</figure> 
<p>Today’s BTC trajectory is also <a href="https://x.com/stoolpresidente/status/1332036226845732865" rel="nofollow" target="_blank">reminiscent</a> of the 2020 “Thanksgiving Day Massacre” when BTC recorded a 13% price drop in 24 hours to $16,412 on November 26. This year, Thanksgiving will be celebrated in the US on November 28.</p> 
<p>Regarding Bitcoin’s latest price drops, recent reports from Glassnode analyzed LTHs’ sell-off activity following the recent surge above $75,600 that BTC reached on November 7.</p> 
<h2 id="accelerated-btc-sell-off-activity">Accelerated BTC Sell-Off Activity</h2> 
<p>Glassnode<a href="https://insights.glassnode.com/the-week-onchain-week-47-2024/" rel="nofollow noopener" target="_blank"> data</a> from November 20 revealed that as Bitcoin hit a new ATH above $75,000 on November 7, all of the 14 million BTC held by long-term holders (LTHs) entered a profitable state.</p> 
<p>This triggered an acceleration of sell-off activity which resulted in a significant decrease of over 200,000 BTC in balance.</p> 
<p>This was a classic and repeating pattern, in which LTHs take profits when price action is strong and demand is sufficient to absorb them.</p> 
<figure style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" src="https://insights.glassnode.com/content/images/2024/11/Group-137692178.png" alt="Glassnode data" width="2000" height="1152" title="Bitcoin Price Drops To $92K Ahead of Thanksgiving Day in the US 29">
 <figcaption class="wp-caption-text">
  Glassnode data
 </figcaption>
</figure> 
<p>Since the beginning of September, when BTC’s price gained momentum, LTHs’ spending steadily increased. When spending exceeds accumulation, this triggers a net decline in holdings.</p> 
<p>However, LTHs were holding significant amounts of unrealized profits in September.</p> 
<figure style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" src="https://insights.glassnode.com/content/images/2024/11/Group-137692175.png" alt="Glassnode data" width="2000" height="1152" title="Bitcoin Price Drops To $92K Ahead of Thanksgiving Day in the US 30">
 <figcaption class="wp-caption-text">
  Glassnode data
 </figcaption>
</figure> 
<p>ETFs have reportedly played an important role in the market, absorbing more than 90% of the sell pressure from LTHs, Glassnode reveals.</p> 
<h2 id="btc-etfs-a-major-source-of-demand">BTC ETFs, a Major Source of Demand</h2> 
<p>Bitcoin ETFs have been an important source of demand in recent weeks, absorbing most of the sell-offs by LTHs. Such a dynamic highlights the rising influence that institutional demand has in shaping the modern BTC market structure.</p> 
<p>Since mid-October, weekly ETF inflows have surged between $1 billion to over $2 billion per week, highlighting an increased institutional demand.</p> 
<figure style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" src="https://insights.glassnode.com/content/images/2024/11/Group-137692180.png" alt="Glassnode data" width="2000" height="1152" title="Bitcoin Price Drops To $92K Ahead of Thanksgiving Day in the US 31">
 <figcaption class="wp-caption-text">
  Glassnode data
 </figcaption>
</figure> 
<p>Since November 13, the LTH sell-side pressure began outpacing the ETF net inflows, in a similar manner observed in late February 2024. Back then, the imbalance between supply and demand triggered increased market volatility and consolidation.</p> 
<figure style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" src="https://insights.glassnode.com/content/images/2024/11/Group-137692182.png" alt="Glassnode data" width="2000" height="1152" title="Bitcoin Price Drops To $92K Ahead of Thanksgiving Day in the US 32">
 <figcaption class="wp-caption-text">
  Glassnode data
 </figcaption>
</figure> 
<p>As unrealized profits reached higher levels, more LTHs accelerated their sell-off, which already exceeded the inflows of BTC ETFs in the short term.</p> 
<h2 id="optimism-remains-strong-in-the-crypto-industry">Optimism Remains Strong in the Crypto Industry</h2> 
<p>The <a href="https://crypto.ro/en/news/bitcoin-reaches-a-new-ath-above-99k-amidst-increased-optimism-and-adoption/">optimism</a> in the crypto industry continues, as preparations are being made for a Strategic Bitcoin Reserve in the US and beyond, and the upcoming shift in Washington will bring more crypto-friendly policies, following Trump’s Presidential Inauguration set to take place on January 20.</p> 
<p>Despite its recent price drops, analysts suggest that BTC’s price will recover following this sell-off, and get back on track to $100,000 in 2024.</p>

Bitcoin Price Drops To $92K Ahead of Thanksgiving Day in the US

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