Short-Term BTC Investors Dump $770M Worth of Bitcoin at Loss While Market Eyes $65K Level
Short-term Bitcoin investors offloaded $770 million worth of BTC at a loss this Monday, increasing the likelihood of a potential decline toward $65,000.
The price of Bitcoin (BTC) fell to the $76,500 level this Monday, wiping out almost all gains accumulated throughout the current month as escalating tensions between the United States and Iran dampened sentiment across cryptocurrency markets. The geopolitical uncertainty has prompted market participants to reassess their exposure to risk and adopt a more cautious approach, with numerous recent purchasers liquidating their Bitcoin holdings at unfavorable prices.
Key takeaways:
- Short-term Bitcoin holders offloaded more than 10,000 BTC valued at around $770 million at a loss this Monday.
- Market analysts are in agreement that a breach below the $76,000 level for Bitcoin could initiate a renewed bearish trend targeting the $65,000-$70,000 range.
Bitcoin's "weak hands" realizing losses
The leading cryptocurrency has pulled back 7% from its recent peak of $82,800 reached on May 6. The price rejection at the 200-day moving average located around $82,000, combined with the daily closing price falling beneath the true market mean and the cost basis for short-term holders hovering near $78,000, have reinforced a more defensive positioning among Bitcoin market participants.
On-chain analytics from CryptoQuant revealed that over 10,000 BTC were sent by short-term holders â defined as investors who have maintained ownership of the cryptocurrency for fewer than 155 days â to the Binance exchange at a loss during Monday's trading session.
These transactions took place when Bitcoin was trading at approximately $76,900, representing about 2% beneath their mean acquisition price of $78,440, indicating that these recent purchasers deposited roughly $769 million in BTC to Binance while realizing losses.
According to CryptoQuant analyst Amr Tah in a QuickTake post published on Tuesday, this activity "reflects short-term holder stress, forced selling, or capitulation from weaker hands during a correction."
Such behavior highlights a well-established pattern where short-term speculators engage in panic-driven selling during market corrections, often locking in losses.
A comparable event occurred in mid-November 2025, which was followed by a sharp 15% drop in BTC price to $78,400 from $96,000 within less than five trading days.
Further analytics from Glassnode indicate that over "7.8M BTC are currently held at a loss," representing a substantial supply overhang that the market must "absorb before any sustained move higher becomes structurally credible."
Compounding Bitcoin's recent downturn are substantial outflows from spot Bitcoin exchange-traded funds (ETFs) based in the United States, which have experienced negative flows during six of the previous eight trading days.
These investment vehicles registered $648.6 million in net outflows on Monday, marking the most significant single-day withdrawal since Jan. 29.
Worldwide Bitcoin investment products also experienced $981.5 million in net outflows throughout the week concluding May 15, pointing to diminishing institutional demand for BTC exposure.
In an X post published on Tuesday, analyst Alek_Carter stated "Markets are getting absolutely hammered," referencing the substantial outflows from Bitcoin investment products, and further commented:
"Money is rotating out fast, panic is creeping in, and traders are clearly hitting the risk-off button hard."
According to previous Cointelegraph coverage, historically low retail investor participation, aggressive liquidation in the futures markets and deteriorating spot demand are contributing to Bitcoin's price declining to fresh May lows.
How low can Bitcoin price go?
The Bitcoin HODL Waves indicator, a metric that monitors the age distribution of BTC holdings across the network, points to the possibility of Bitcoin establishing a bottom between $65,500-$70,500 should the current market weakness persist.
Over time, increases in long-term holder participation combined with decreasing short-term speculative activity have typically aligned with significant market bottoms preceding subsequent recoveries.
The visualization below demonstrates a more robust long-term holder base (evidenced by noticeably thicker blue/purple bands), "reflecting growing institutional adoption," according to CryptoQuant analyst Sunny Mom in a Quicktake analysis released on Tuesday.
This pattern indicates that the supply structure exhibits greater structural strength in the present cycle compared to previous ones, "which changes how BTC forms its bottom," the analyst explained, further stating:
"Our predicted price range for this cycle's bottom is $65.9Kâ$70.5K. If $70.5K holds, we'll slowly grind out a bottom in the upper range."
From the perspective of technical analysis, Bitcoin is forming the fifth straight daily bearish candle, implying that the "momentum is starting to shift back to the bears," according to analyst Alex Marzell in a Monday post on X, who added:
"Bitcoin may come back to retest the breakout zone around $70K support."
Sharing a similar outlook, MN Capital founder Michael van de Poppe remarked this "doesn't look great" for Bitcoin, noting that the price must maintain support within the $74,500-$76,000 range "in order to get back some momentum in the markets."
"If this area doesn't hold, then we're most likely cascading through the lows of the recent rally and test <$65,000 for support."
As previously detailed by Cointelegraph, a breakdown beneath the 50-day SMA positioned at $76,000 would elevate the probability of the BTC/USDT pair declining toward $65,000 over the near term.