BTC Price Flash Crash: Are Long-Term Holders Selling the Dip to Fuel the Bull Market?
Original Title: "BTC Flash Crash Needle Insertion, LTH Profit Taking a Bull Market 'Standard'?"
Original Source: BitpushNews
Bitpush data shows that after hitting a historical high of nearly $104,000 yesterday, Bitcoin experienced a sudden and sharp plunge around 6:30 AM Beijing time on December 6, plummeting to around $91,000 in a few minutes, leading to a widespread market liquidation. Data shows that in the past 24 hours, nearly 210,000 investors were liquidated, totaling over $1 billion, with long positions predominating. At the time of writing, the BTC price has rebounded to above $97,000. This needle insertion did not affect other altcoins.

Analyst: LTH Profit Taking Not Yet at Extreme Levels
CryptoQuant's data shows that after breaking the $100,000 mark, long-term holders (LTH) began to take profits. The Long-Term Holder Spent Output Profit Ratio (LTH-SOPR) indicator shows that the Bitcoin sold by long-term holders has realized four times the profit from their original purchase price. Julio Moreno, CryptoQuant's research director, pointed out: "After Bitcoin broke the $100,000 mark, long-term Bitcoin holders (LTH) started to take profits, which is a normal phenomenon during a Bitcoin bull market, and profit-taking has not yet reached extreme levels."

However, analysts believe that profit-taking is just one factor leading to Bitcoin's fall. Owen Lau, Executive Director and Senior Analyst at Oberheim, had previously warned investors to be cautious when Bitcoin reached $100,000, as profit-taking scenarios might arise. In addition, market concerns about macroeconomic conditions, regulatory policies, and other factors could also exacerbate market volatility.
Focus on Non-Farm Payrolls Data
Investors are currently focusing on the upcoming release of US non-farm payroll data on December 6 in Eastern Time, as this data could have a significant impact on the Fed's monetary policy, which may in turn affect the Bitcoin market.
Jag Kooner, Derivatives Director at Bitfinex, stated that the market is generally expecting positive trends in November's non-farm payroll data. If the data shows strength, the Fed may slow down its rate cut pace, or even delay rate cuts. This would lead to a stronger US dollar, exerting a certain dampening effect on risk assets, including Bitcoin.
However, the current market still leans towards a rate cut expectation for the Federal Reserve's December meeting. Data from the Chicago Mercantile Exchange shows that the market widely believes the Fed will cut interest rates by 25 basis points in December with a probability of over 70%. Lower rates typically stimulate market liquidity and provide support for risk assets, thus having a positive impact on Bitcoin prices.
In addition to monetary policy factors, institutional investor interest and political sentiment continue to support Bitcoin's rise. WeFi Co-Founder Maksym Sakharov emphasized that institutional investors have been steadily accumulating Bitcoin, with many believing that as global trade prepares for the impact of Donald Trump's proposed tariffs, Bitcoin can serve as a hedge against inflation and economic uncertainty.
Sakharov stated, "Institutional accumulation remains a key driving factor for Bitcoin price momentum. Additionally, the optimistic sentiment surrounding the Trump administration's support for cryptocurrency policies has boosted market confidence, and the combination of institutional purchases and favorable political sentiment has lifted the price of the coin."
21Shares' Cryptocurrency Research Strategist Matt Mena believes that the next key target for BTC is $110,000, as Deribit data shows that most of the call option contract volume on January 31, 2025, is concentrated at that price level.
You may also like

HYPE Price Target Achieves $50 as Hyperliquid Reduces Team Token Unlock by 90% — Assessing The Rally’s Longevity
Key Takeaways Hyperliquid significantly cut its monthly token unlocks by 90%, sparking renewed interest in its HYPE token’s…

Hong Kong-Based OSL Group Launches $200M Equity Raise for Stablecoin and Payments Expansion
Key Takeaways OSL Group, a prominent digital asset platform in Asia, has initiated a significant $200 million equity…

Gold Price Prediction: Current Trends and Future Outlook for January 28, 2026
Key Takeaways Gold and silver prices play a significant role in the global economy, reflecting both market trends…

GameStop 2.0? Why Robinhood’s CEO Advocates Tokenization for Trading Halts
Key Takeaways Tokenized stocks are seen as a solution to counteract the disruptions seen in traditional equity markets…

Central Bank of the UAE Endorses First USD-Backed Stablecoin
Key Takeaways The UAE Central Bank has endorsed the first US dollar-backed stablecoin, USDU, to streamline compliant settlements…

Can the Gold Price Rise to $6,000?
Key Takeaways Gold prices in 2026 have experienced dramatic surges, reaching unprecedented levels in just the first month…

Solana Loses Major Portion of Validators as Smaller Nodes Exit: Concerns Over Centralization
Key Takeaways: Solana has experienced a significant drop in active validators from a high of 2,560 in March…

Gold Price Prediction as Tom Lee Says Metals Rally Could Hit Crypto
Key Takeaways: Gold recently reached an all-time high of $5,598, reflecting a strong investor shift towards safe-haven assets…

Bitcoin’s Historical Bottom Indicator Points to $62K – Could BTC Fall That Low?
Key Takeaways Bitcoin is nearing a critical support level of \$62,000, with key indicators suggesting potential further declines.…

Talos Raises $45M Series B Extension Backed by Robinhood, Bringing Total Funding to $150M
Key Takeaways: Talos, a leading provider of institutional digital asset trading technology, has raised $45 million in a…

What is the Next Milestone for Gold Prices and Will It Reach $6,000 by Year End?
Key Takeaways: Gold prices recently crossed the $5,000 per ounce mark, spurring predictions of further increases amidst global…

Bitcoin Price Prediction: Binance Inflows Just Hit a 4-Year Low – Violent Move Above $100K is Next
Key Takeaways: Bitcoin inflows into Binance have dropped to their lowest in four years, potentially signaling a tight…

Gold to $10,000 and Silver to $150: My Wild, Or Perhaps Not-So-Wild 2026 Price Predictions
Key Takeaways Geopolitical uncertainties are significantly driving up the demand for gold and silver, suggesting the prices may…

Hong Kong Enhances Gold Market Access Through Hang Seng Gold ETF and Tokenized Units
Key Takeaways: The Hang Seng Gold ETF offers Hong Kong investors direct access to gold by launching a…

XRP “Millionaire” Wallets Rise Despite Modest Price Dip: Santiment
Key Takeaways: The count of XRP wallets holding over 1 million tokens is increasing, despite a slight dip…

Russia Caps Crypto Investments at $4,000 Annually for Non-Qualified Investors – Will Others Follow Suit?
Key Takeaways Russia’s proposal sets a $4,000 annual investment limit for non-qualified crypto investors, sparking discussions on regulatory…

Japan’s Metaplanet Announces $137 Million Capital Raise Via Third-Party Allotment
Key Takeaways Japanese firm Metaplanet Inc. has strategized a $137 million capital raising through the third-party allotment of…

Crypto Price Prediction for January 28 – XRP, Solana, Bitcoin
Key Takeaways Bitcoin price recently hit $90,000 but struggled to maintain this peak. XRP and Solana are following…
HYPE Price Target Achieves $50 as Hyperliquid Reduces Team Token Unlock by 90% — Assessing The Rally’s Longevity
Key Takeaways Hyperliquid significantly cut its monthly token unlocks by 90%, sparking renewed interest in its HYPE token’s…
Hong Kong-Based OSL Group Launches $200M Equity Raise for Stablecoin and Payments Expansion
Key Takeaways OSL Group, a prominent digital asset platform in Asia, has initiated a significant $200 million equity…
Gold Price Prediction: Current Trends and Future Outlook for January 28, 2026
Key Takeaways Gold and silver prices play a significant role in the global economy, reflecting both market trends…
GameStop 2.0? Why Robinhood’s CEO Advocates Tokenization for Trading Halts
Key Takeaways Tokenized stocks are seen as a solution to counteract the disruptions seen in traditional equity markets…
Central Bank of the UAE Endorses First USD-Backed Stablecoin
Key Takeaways The UAE Central Bank has endorsed the first US dollar-backed stablecoin, USDU, to streamline compliant settlements…
Can the Gold Price Rise to $6,000?
Key Takeaways Gold prices in 2026 have experienced dramatic surges, reaching unprecedented levels in just the first month…