Short-Term Panic in Bitcoin: Bear Expectation of Weak Hands Increased by 2 Billion Dollars! - Coin Bulletin

Short-term Bitcoin investors are exiting at a loss with the decline in prices, while open positions on CME hit a record low and there were significant outflows from Bitcoin ETFs.

Recent developments in the cryptocurrency market show that short-term Bitcoin investors have closed their positions at the expense of losses and open positions have significantly decreased in derivative markets.

According to Glassnode data, addresses holding Bitcoin for less than 155 days transferred 21,000 BTC (2.2 billion dollars) to exchanges on Monday, along with the price decline.

Active traders, newcomers, and investors known as 'weak hands' often close their positions during downturns by being sensitive to price fluctuations.

On Monday, BTC fell below $98,000 due to the impact of the developments in the artificial intelligence field of the Chinese startup DeepSeek. Signs of "capitulation" seen at local lows in other corners of the market were also observed.

For example, BTC perpetual futures funding rates turned negative, indicating an increase in demand for the bear market.

At the Chicago Mercantile Exchange CME( which is an indicator of institutional activity, a similar risk aversion tendency was observed.

In addition, Bitcoin exchange-traded funds listed in the US experienced a significant outflow of $457.6 million. This outflow reminded of a similar movement on January 13th.

On the other hand, signs of recovery were observed after the sharp declines in Nasdaq and Nvidia. Nvidia experienced the largest single-day market value loss in history on Monday, and after Bitcoin fell to 97,500 dollars, it rose above 103,000 dollars.

Analysts noted that bulls will try to retest the $105,000 level in the short term. While uncertainty prevails in the markets ahead of the Fed meeting on Wednesday, it is reported that Bitcoin has performed better against small companies and the financial sector since the beginning of the year.