Bitcoin Sees Largest STH Sell-Off in 24 Hours

Key Points:

Short-term holders offloaded 60,000 BTC to exchanges in one day.
Moves coincide with market volatility impacting Bitcoin BTC +2.40% prices significantly.
On-chain activity suggests potential longer-term market stabilization.

Bitcoin short-term holders have reduced their holdings significantly by unloading approximately 60,000 BTC to exchanges, marking the largest single-day sell-off on February 5, 2026.

This sell-off contributes to market volatility and signals potential capitulation, though decreased long-term holder sales and whale accumulation suggest a possible market bottom.

Short-term holders of Bitcoin released approximately 60,000 BTC to exchanges within a 24-hour period, marking the largest single-day sell-off. This occurrence highlights the market’s heightened volatility and its capacity to significantly influence market dynamics.

Primary actors in this event include Bitcoin short-term holders who liquidated their BTC positions. The overall exchange netflows rose substantially, signaling heightened supply pressure on Bitcoin’s market value amidst existing economic conditions.

The immediate effect of this sell-off is felt across cryptocurrency markets, with Bitcoin prices reacting sharply to the influx of supply. Exchange balances have fluctuated noticeably, indicating shifts in investor sentiment and market behavior.

Financially, the sell-off has exacerbated Bitcoin’s recent price struggles, which have seen values drop from historical highs. “A marked deterioration in investor sentiment towards the asset class”, noted James Butterfill, Head of Research at CoinShares. Long-term holders appear to pause liquidation, offering a potential sign of market floor stabilization.

Historical data suggests similar sell-offs have led to subsequent market resets, influencing Bitcoin’s value trajectory. Observers note a crucial market recalibration as speculative selling pressures deviate, aligning with past volatility patterns tied to financial stressors.

Looking ahead, analysts predict a cautious recovery phase where Bitcoin’s reserves could stabilize. Regulatory adjustments and institutional interest might bolster recovery efforts, reinforcing on-chain accumulation as economic environments stabilize, fostering potential bullish sentiments post-correction.