BTC crashes to $86K, and short-term traders send record number of Bitcoins to exchanges

Short-term Bitcoin holders lost money when BTC fell 15 weeks to its lowest price. This group of traders then moved nearly 80,000 BTC onto exchanges.

It is important to note that the word “you” means “you”. latest data CryptoQuant’s onchain analysis platform reveals the reason why traders send massive amounts of Bitcoin to exchanges centralized, which has historically been viewed negatively for BTC price movement.

Bitcoin traders capitulate when price drops below cost basis

BitcoinBTC) short-term holders (STHs) — entities hodling for up to 155 days — appear to have capitulated in fear during the latest crypto market downturn.

The BTC/USD fell to near $86,000 On February 25, the speculators transferred 79.300 BTC ($7 billion) in 24 hours to their exchange wallets. It is not necessary that sending Bitcoins to exchange wallets confirms the sale of coins. BTC may have been used to boost the margin for leveraged trades or as a preparation to buy or sell Bitcoin at predetermined prices.

“This is the largest Bitcoin sell-off of 2025,” CryptoQuant analyst Axel Adler Jr. said Comment on the figure while it is being uploaded to X.

Chart showing the highest profit-loss transactions in a 24-hour period. The data does not prove that the users sent coins to the exchange wallets sold them, but it highlights the uncertainty of shorter-term traders.

“Yesterday’s price drop likely triggered panic selling, and if further corrections occur, similar behavior could reemerge,” CryptoQuant’s fellow contributor Avocado_onchain continues in “QuicktakeBlog posts for February 26.

The article analyzed the SOPR metric (spent output profit ratio), which is a metric that tracks whether coins are being moved at a profit or if they’re moving them in obscurity onchain.

STH SOPR fell to 0.96 on February 25, the lowest it has been since August 20,24, at the height Japanese yen carry-trade unwind.

“On the other hand, long-term holders have remained largely unfazed by the recent plunge, maintaining their holdings and providing support against additional price declines,” Avocado_onchain observed.

“Nothing to be bearish about”

James Check, the creator of Checkonchain’s onchain data, believes that despite the severity of the market correction currently taking place, crossing the aggregate breakeven point The STH cohort would reach a turning point at $90,000.

“It’s kind of interesting that we’ve got this support level, which should hold, at around $90,000, but below it there’s just not much,” He said this in the most recent episode of Checkonchain’s podcast. Rough ConsensusJust before the crash, a recording was made.

Related: BTC price levels to watch as Bitcoin skids to 3-month lows under $87K

Check that “very little” The BTC market was awash with BTC between its old highs, and local lows around $86,000.

Comparing Bitcoin’s onchain costs versus the realized price of Bitcoin across both short and long term holder groups also provides a useful context to current events.

Glassnode looks at the seven-day change in percent for the actual price of various onchain cohorts. “helps to identify periods where the aggregate cost basis has increased or decreased by a significant amount over a short period of time.”

The cost of holding a short-term bond is currently $92,595, while the cost of maintaining a long-term bond is $24,845.

Popular Bitcoin names called on a level-headed attitude when discussing the market’s panicked behavior this week.

Joe Carlasare is a digital asset attorney. He believes that the recent euphoria, since Bitcoin has broken past its old highs, $73,800 in the last quarter, has altered perceptions about the capabilities of this technology.

“The panic is palpable. In December, everyone swore Bitcoin couldn’t go down. ‘Nation-state bid is here, bro!’ Now they’re convinced it can’t go up,” He summarized On X. 

“Reality? Bitcoin overshoots both ways. Could it go lower? Sure. But this is the buy zone. Nothing to be bearish about.”

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.