Bitcoin Liquidation Wave Fuels Accumulation: Is a Rebound Brewing?

A significant liquidation event on Binance, with over $160 million in leveraged Bitcoin positions wiped out due to price drops below the $101,000 mark, has triggered market volatility. However, this may have created an opportunity for long-term investors. 4,000 BTC was withdrawn from Binance following these events, hinting at a potential shift towards accumulation as investors seek to protect their assets or potentially position themselves for future upside. Binance’s sustained outflows since May 22nd further support the idea of growing long-term investment interest. Notably, LTH (Long-Term Holder) capital has surpassed $37 billion, reaching its highest point since June 2023, a stark contrast to short-term holder (STH) volatility. This divergence between short-term and long-term behavior suggests a structural shift in the market and points towards Bitcoin entering a more stable phase characterized by reduced leverage, stronger accumulation from long-term investors, and potential for sustained growth in the future. While retail investors are experiencing price fluctuations, these on-chain changes suggest Bitcoin is undergoing a healthy reset.