Key Points
- Bitcoin’s short-term holders offloaded 11,549 BTC due to looming macro uncertainty, resulting in a $1.20 billion sell-off.
- Dogecoin and Cardano experienced the most significant drawdowns, with DOGE seeing $18 million in long positions squeezed.
Bitcoin’s short-term holders, or STHs, reacted swiftly to the prospect of macroeconomic uncertainty. On May 11th, they sold off 11,549 BTC, equivalent to $1.20 billion, when the spot price was around $104,139.
This massive sell-off resulted in a significant market correction, with BTC’s value plummeting to $100,691. This was the most significant intraday drawdown in over a week, leading to over $500 million in liquidations.
Altcoins Bear the Brunt
While all major cryptocurrencies felt the impact of this sell-off, Dogecoin and Cardano were hit the hardest. DOGE experienced a squeeze of $18 million in long positions, far outpacing ADA’s comparatively modest $4.7 million in forced exits.
Historically, STHs have turned to altcoins as a safe haven during periods of Bitcoin overextension or when BTC is nearing a local peak. However, this recent market movement has put this strategy to the test.
Market in Wait-and-See Mode
The market is currently in a “wait-and-see” mode, with many investors keeping a close eye on April’s Consumer Price Index (CPI) print. This data drop could be a decisive factor in shaping future market trends.
However, the narrative around potential rate cuts adds another layer of complexity. Despite traders’ anticipation of rate cuts, historical data suggests that even during periods of peak tariff chaos, the Federal Reserve has maintained a hawkish stance.
With the recent “breakthrough” deal between the U.S. and China, the likelihood of a significant shift to a dovish policy seems to be diminishing.
