On Thursday, short-term holders sent over $2 billion worth of Bitcoin to exchanges at a loss, the highest since the yen carry trade unwind on August 5.

In the past three days, short-term holders have sent more than $6 billion worth of Bitcoin to exchanges at a profit, locking in gains as the month drew to a close.

Market Situation

The recent decline in Bitcoin's price triggered panic selling among short-term holders—those who have held Bitcoin for less than 155 days. In total, over 54,000 BTC was sent to exchanges on Thursday, reaching levels not seen since March 27.

Several factors may contribute to the current market drop, including the upcoming U.S. presidential election on November 5, which typically prompts investors to reduce risk exposure. Additionally, a significant decline in the U.S. stock market further impacted market sentiments, erasing nearly $1 trillion on the same day.

As Bitcoin's price dips, expectations arise that it may not reach new all-time highs until after the election results are known.