Bitcoin clawed back above $64,000 early Tuesday after a brutal three-day rout that sent it tumbling from $65,409 to $62,466. The rebound looks fragile, though. Short-term holders who bailed out first have started nibbling back in, but the broader market remains awash in profit-taking.
The sell-off that peaked on July 31st wasn't just about price action. The Coldcard hardware wallet hack spooked investors and fed a wave of bearish chatter that dragged sentiment underwater. What's telling is how quickly the panic reversed. Short-term holders, those sitting on coins for under 155 days, led the initial dump with roughly $468 million worth of Bitcoin hitting exchanges on August 1st and 2nd. By August 3rd, the same crowd had flipped to buying roughly 3,150 BTC. That swing suggests early accumulation kicking in rather than capitulation.
Long-term holders bear some responsibility too. Their profit ratio relative to short-term players hit a fresh high on August 3rd, meaning investors who've held through thick and thin are finally taking chips off the table. That's actually normal when volatility spikes. The market needs this selling pressure to ease before Bitcoin can find solid footing.
Spot exchange inflows tell a grimmer story. Over the past 24 hours, outflows topped inflows by $105.7 million, marking 15 consecutive days of positive netflow. That's traders locking in gains rather than building positions. Until that reverses, any bounce faces headwinds.
This material is for informational purposes only and should not be considered financial advice or a recommendation to buy or sell any asset.
