Bitcoin price drops 28% and triggers $5 billion in selling pressure on Binance

The recent correction in the Bitcoin price is putting significant pressure on short-term holders. After a peak of $82.000. the price has dropped back towards $60.000. a decline of more than 28% in a short period. That move is causing panic among short-term investors, who are massively reducing their positions via Binance.

Bitcoin is available at OKX and Bybit.

STH inflows on Binance reach extreme level

In June, inflows from short-term holders (STH) on Binance rose to over 80,000 BTC over a seven-day period. That is equivalent to approximately $5 billion in selling pressure. Analyst Darkfost points out that this is the highest inflow since the last all-time high, although it remains below the record from February. Back then, inflows peaked at more than 100,000 BTC, also at the moment when Bitcoin tested $60.000,

The situation is very similar to earlier this year. Again, the market is reacting with fear: the Fear & Greed Index has dropped below 10, its lowest point in a long time. The Bitcoin price has been under pressure for some time, and Bitcoin ETFs are also recording a record outflow of $635 billion in 30 days, further reinforcing the negative sentiment.

Emotional decisions rarely profitable

What stands out is that it is always the same group that is hit the hardest: the short-term holders. These are investors who entered relatively recently and tend to sell at every downturn. Their emotional reaction to volatility repeatedly results in large-scale outflows to exchanges such as Binance. Darkfost states that such decisions rarely pay off.

At the time of writing, Bitcoin is trading at $64.100. a slight increase of 0.3% over the past 24 hours. Whether the bottom has already been reached remains to be seen. Analysts are hoping for a recovery towards higher levels, and earlier there was speculation about a new local peak above $68.000. However, as long as STHs remain sensitive to market fluctuations, new selling pressure on every dip cannot be ruled out.