Will Crypto Bounce Back? Market Shaken by Short-Term Panic Sell-Off!

by

Ah, Bitcoin (BTC), the restless wanderer of the financial world, has plunged from its all-time high of nearly $124,500. The news, as expected, has sent ripples of dread through the hearts of traders and investors alike-fear, uncertainty, doubt, and all the usual suspects.

Short-Term Holders in the Red

Now, as the dust settles, we see some short-term holders waving the white flag and selling their Bitcoin at a loss. It’s a familiar scene, one we witnessed back in January, as reported by the ever-vigilant CryptoQuant.

Bitcoin’s Short-Term Holders Selling at a Loss

“This loss-selling event becomes a critical barometer of market health. If absorbed quickly, it could mirror past resets that fueled strong rebounds. If not, it risks signaling a momentum breakdown.” – By @KriptoMevsimi

– CryptoQuant.com (@cryptoquant_com) August 19, 2025

Will Crypto Market Rebound?

Despite the panic, CryptoQuant’s analyst seems cautiously optimistic, suggesting that this could be the “healthy reset” the market needs.

“This loss-selling event becomes a critical barometer of market health. If absorbed quickly, it could mirror past resets that fueled strong rebounds. If not, it risks signaling a momentum breakdown,” wrote CryptoQuant’s Kerem, with just a dash of drama.

Meanwhile, the usual suspects-outflows from crypto-based ETFs, US inflation fears, and the ever-charming macroeconomic gloom-are weighing on the digital assets space.

Bitcoin, currently hovering below $115,000, still maintains a market value of $2.28 trillion, though it did see a 10% surge in daily trading volume, reaching a robust $65 billion.

And what’s this? The global crypto market trading volume also saw an 8% increase to $175 billion. Could it be? Investors are dipping their toes back in? Or is this just a temporary blip?

And in case you missed it, CryptoQuant’s analysis has revealed that whale activity is on the rise. Yes, you read that right-whales are swimming back into the market, possibly gearing up for a significant shift. Historically, when whale activity surges during bearish consolidations, the market has bounced back with gusto.

Read More

2025-08-19 12:19