Recent drop in Bitcoin price to $113,557.76 is driven by spot market selling, though signs of panic are missing.
Spot Selling Leads to Price Decline
Bitcoin's price fell by 1.43% in the last 24 hours, but Glassnode data indicates no signs of a 'leverage cascade' in the market. This suggests that the current situation does not point to market overheating. Most selling activity is occurring in the spot market while open interest in futures remains largely unchanged.
Short-Term Holders Account for Most Selling Volume
According to Glassnode, short-term holders made up the majority of Bitcoin sales. They sold BTC worth $18.24 billion, accounting for 85.5% of the total volume. Long-term holders, on the other hand, sold only $3.10 billion. This indicates that recent price drops are likely tied to risk management by newer investors.
Major Companies Continue to Buy Bitcoin
Despite the price decline, several major companies are still increasing their Bitcoin holdings. For instance, MicroStrategy filed a notice with the SEC to sell shares worth $4.2 billion to use the proceeds for Bitcoin purchases. Similarly, Japanese investment company Metaplanet plans to raise $3.7 billion through a stock offering to support its Bitcoin acquisition strategy.
The decline in Bitcoin prices seems to be a normal result of spot sales with no panic in the futures market. Major companies continue to maintain their positions in this asset.
