Bitcoin's long-term holders are still in the green. Short-term investors, however, are selling at a loss. CryptoQuant's Head of Research Julio Moreno highlighted this trend on X. He points out a major capitulation event among newer Bitcoin owners. The crypto market splits investors into two camps. Those holding for less than 155 days are "short-term holders" (STHs). Anyone beyond that is a "long-term holder" (LTH). Stats show longer holding times lead to less selling. STHs are the market's weak hands. LTHs are the diamond-handed HODLers. The recent crash sparked different reactions from these groups. Moreno used the "Spent Output Profit Ratio" (SOPR) to show this. SOPR reveals if a group is selling at a profit or loss. Above 1 means profit. Below 1 means loss. A chart shows the SOPR for both groups. STH SOPR has been below 1 during the price drop. They're selling at a loss. At its worst, STH SOPR fell below 0.8. These paper hands were taking over 20% losses. Talk about panic! Meanwhile, LTHs are chilling. Their SOPR stayed above 1. They're still making bank. During the brief price bounce, LTHs cashed in big time. STHs barely broke even, and only for a hot minute.

Bitcoin took a nosedive on Monday, briefly touching $49,000, before going up to $57,000. This sparked a massive sell-off across crypto markets. Binance, the world's biggest crypto exchange, saw net inflows of $1.2 billion in 24 hours [Tuesday]. Binance CEO Richard Teng shared this data from Defi Llama. He called it one of the highest net inflow days in 2024. Teng tweeted: "Amid the macroeconomic climate and yesterday's market downturn, #Binance recorded a net inflow of US$1.2 billion in the past 24 hours, according to @DefiLlama's CEX Transparency metrics." Bitcoin has since clawed its way back to around $55,000 by midday (UTC) on August 6. As of August 7, it's trading at $56,700. Some experts reckon Bitcoin could hit $60k again soon. Anton Toroptsev, Marketing Director at Bitget, thinks it'll be a quick rebound. "By the middle of this week," he says, BTC might hit $58,000. By week's end, it could be back at $60k or higher. So, what caused Bitcoin to tank? CryptoQuant points to macro headwinds and a broader market sell-off. Bitcoin hit $49,000, its lowest since February 14. CryptoQuant's weekly note highlights some recent macro issues. These include higher interest rates in Japan and worse-than-expected U.S. unemployment data. The Middle East turmoil and U.K. riots didn't help either. These factors have spooked traders. Many closed long positions in crypto futures markets. Sellers took charge. Not all trading platforms could handle the chaos. Robinhood had to pause its overnight trading. They blamed issues with Blue Ocean ATS, their third-party execution venue. Robinhood announced this on X (formerly Twitter). It's a bit of a bummer for night owls looking to trade. Despite the drama, Binance's massive inflows suggest many traders see opportunity in the dip. It's been a wild ride, but crypto markets are nothing if not resilient. The coming days will show if Bitcoin can keep up its recovery. For now, it seems the crypto crowd isn't easily fazed by a bit of market turbulence.

Bitcoin's dominance in the crypto market has surged to a three-year high. This comes as the wider market faces turbulence. Data from Coinglass shows Bitcoin's market share at 55.6989%. It's the highest since April 2021. The total crypto market cap then was $1.09 trillion. Now it's $1.2 trillion. Market conditions have changed significantly since 2021. Ruslan Lienkha from YouHodler says today's market is "much more transparent and liquid". He notes increased trading volume and less price manipulation. Back in 2021, new investors entered through Bitcoin. "This year's main driver of Bitcoin's dominance is the rise of ETFs," Lienkha explains. These make Bitcoin accessible to traditional investors. They're drawn to its "unique status as a highly decentralized asset". This feature is hard to replicate in other projects. Jake Ostrovskis from Wintermute calls it a "flight to safety". Investors are turning to Bitcoin, ditching riskier altcoins. Lienkha points to a "segmentation of the crypto market". Bitcoin and Ethereum are cozying up to traditional finance. Meanwhile, meme coins are creating their own niche. These attract traders less interested in established cryptos. Ostrovskis notes increased institutional presence. This exposes crypto to "macroeconomic factors and regulatory developments". Altcoins might struggle in this environment. They lack the "same level of institutional backing and stability" as Bitcoin and Ether. Bitcoin's dominance comes amid market turmoil. Crypto prices have taken a hit, with Bitcoin dipping below $50,000 on Monday. It's a perfect storm of factors. Interest rate wobbles and Middle East tensions are spooking investors. The U.S. presidential race is adding to the mix. Trump's polling numbers are slipping as Kamala Harris gains ground. Trump's pro-crypto stance has won him support from crypto bigwigs. Harris is trying to mend fences with the industry. But her efforts might be "a tad late", according to Bernstein Research. The current administration's "war on crypto" has left its mark. In this uncertain climate, Bitcoin's standing as the OG crypto is paying off. It's weathering the storm better than its younger rivals.

Bitcoin isn't ready for the big leagues yet. That's the word from Nik Bhatia, founder of The Bitcoin Layer. In a CNBC interview, Bhatia dropped a truth bomb. He reckons the 15-year-old cryptocurrency is still too green to be a safe haven asset. Why? Bitcoin's short history makes it look risky. It's not your grandpa's gold, that's for sure. Bhatia, who penned "Layered Money," points out Bitcoin often mimics the stock market. When stocks go up, so does Bitcoin. When they tank, Bitcoin follows suit. But here's the kicker: sometimes Bitcoin goes rogue. It's shown significant growth during these maverick periods. These episodes hint at Bitcoin's potential as a hedge against crazy monetary policies. Bhatia sees Bitcoin gunning for safe haven status. "Bitcoin is a young asset," Bhatia explains. "It still mostly trades like a risk-on asset. That's why you see it crater alongside global stocks this week." Speaking of craters, Bitcoin took a nosedive on Monday. It tumbled over 10%, mirroring the broader market slump. Ouch. Over the past week, the crypto darling has fallen 16%. That's gotta hurt. But Bhatia's not throwing in the towel. He's still bullish on Bitcoin, citing the boatload of cash flowing into the crypto market. "Bitcoin historically sees 25% to 50% drawdowns in bull markets," he notes. "I get it, though. For a lot of holders right now, it can feel pretty scary." So, is Bitcoin ready to be your financial safety blanket? Not quite yet. But give the kid some time. It might just surprise us all.

US Senator Cynthia Lummis has made waves with a bold Bitcoin proposal. The Wyoming Democrat wants Uncle Sam to buy a million bitcoins. That's about $60 billion worth of crypto. Lummis dropped this bombshell at a Bitcoin conference in July. She likened it to the Strategic Petroleum Reserve. The idea? Boost the greenback and maybe chip away at the national debt. The bill's now landed in the Senate Banking Committee. They'll give it a once-over and chat with the experts. If they give it the thumbs up, it's back to the Senate floor. Folks are buzzing about it. Senators have been flooded with letters. 2,200 in just three days. Democrats got the lion's share with 1,333. Republicans weren't far behind with 850. But it's not all sunshine and rainbows in crypto land. The market's taken a bit of a beating lately. Bitcoin's down 11% in a week. Ouch. Still, crypto's hot in Washington. Trump's singing its praises on the campaign trail. That's put the cat among the pigeons. Other candidates might have to pipe up about crypto too. It's a big deal. 20% of US voters have skin in the crypto game. That's nothing to sneeze at. Lummis reckons her bill could help tackle the national debt. It's a whopping $35 trillion. That's a lot of zeroes. The crypto market's worth about $2.15 trillion right now. It's down a smidge, but still a pretty penny. If Lummis gets her way, the Treasury would be stacking sats for five years. That's crypto-speak for buying Bitcoin, by the way, in case you are unfamiliar with the expression. But you are probably familiar with the notion that massive buyout of BTC inevitably leads to price surge.