Bitcoin saw a surge in short-term holder withdrawals from exchanges, signaling significant selling pressure and billions in losses. This outflow comes amid intensified profit-taking by longer-term investors, leaving the market in a fragile state. While institutional interest remains strong, the trend has triggered a double-digit decline in market capitalization this week. 48 hours of trading saw over $5.69 billion in Bitcoin flow out from short-term holders to exchanges. This follows record highs earlier this month, indicating rapid price fluctuations within the crypto landscape. 50,026 BTC was deposited by these investors in just two days, one of the largest influxes driven by losses, according to CryptoQuant. The sell-off also coincided with $441 million in liquidations reported during the same timeframe as prices retreated. Maartunn, on-chain data provider CryptoQuant’s analyst, highlights this as a significant capitulation among short-term traders who are exiting positions at a loss. 📈 This massive outflow signals increased selling pressure, further driving down the market, with historical trading patterns showing August often sees double-digit losses. On the other hand, longer-term investors enjoyed a period of profit-taking after reaching record highs in mid-July. They reportedly made over $1.5 billion on July 18th, marking one of the largest gains since December 2024. The influx of institutional buying from figures like Michael Saylor, who purchased $51.4 billion in Bitcoin between August 11th and 17th, has also impacted market sentiment, but ultimately caused a retreat after reaching record highs. As traders navigate this volatile climate, the question remains whether short-term losses will continue to impact overall market sentiment.