Bitcoin's price touches $71,000, but volatility and sell-side pressures loom

Markets • June 4, 2024, 1:44PM EDT
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Quick Take

  • Bitcoin’s price briefly touched $71,000, partly propelled by short liquidations.
  • However, Glassnode analysts forecast increased volatility and sell-side pressure from long-term holders.

Bitcoin short liquidations jumped to over $20 million in the past 24 hours, helping propel the largest digital asset by market cap to touch the $71,000 mark briefly. 

Bitcoin is now changing hands for around $70,700, having increased over 3% in the past 24 hours, according to The Block’s price page.

The rise in bitcoin’s price over the past day saw a total of $27 million in liquidated bitcoin positions. The wider cryptocurrency market was hit by over $87 million in liquidations in the same period. Of these combined crypto liquidations, the majority — around $50 million — were short positions, according to Coinglass data.

According to Tuesday's QCP Capital report, "unprecedented inflow access for traditional capital around the world will undoubtedly keep bitcoin price supported, with bitcoin touching $71,000 into the New York session."

Sell-side pressure increasing from long-term holders

However, according to Tuesday's Glassnode market report, sell-side pressure is increasing from long-term bitcoin holders, who hold coins aged three months to three years. "We can expect that this cohort's incentive to sell more supply will grow should prices climb high, and elevate their unrealized profit further," the report added. 
 
Glassnode noted that the reclamation of bitcoin's price above $68,000 over the past 24 hours puts only 0.03% of the long-term holder cohort in a position of loss. This has driven most of the short-term holder cohort back into holding unrealized profit. In contrast, analysts said the price surge has driven most of the short-term holder cohort back into holding unrealized profit.
 
Nonetheless, the report said, current conditions are "typical of the early euphoric phase of a bull market."

Market volatility expected in the near term

The Glassnode report foresees increased volatility after the bitcoin market's relative stability over the past week.
 
"Long and short-term holders have experienced a reset in their sell-side risk ratio, suggesting a new equilibrium has been found. This indicates that the market is ready to move, and volatility expectations for the near future should be heightened," the report added.
 
The GM 30 Index, representing a selection of the top 30 cryptocurrencies, increased 2.58% to 148.41 in the same period.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

AUTHOR

Brian McGleenon profile picture Brian McGleenon

Brian McGleenon is a UK-based markets reporter for The Block. He has worked as a financial journalist and producer for multiple news outlets over the years, such as Fuji Television, The Independent, Yahoo Finance, The Evening Standard, and The Daily Express. Brian is also a screenwriter and producer with one feature film produced and one in development with Northern Ireland Screen. Apart from web3 and cryptocurrency developments, he is also interested in geopolitics, environmental issues, artificial intelligence, and longevity research. Get in touch via email [email protected].

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To contact the editor of this story: Lawrence Lewitinn at [email protected]

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