Bitcoin Price Stalls Below $78,000 as Analysts Warn of Extreme Volatility

Key Insights:

• Bitcoin price remains below $78,000 as long-term holders sell at an average loss of 20%.
• BTC price gets support from $1.61 billion in ETF buying over four days.
• The price of Bitcoin faces higher volatility after more than $1.6 billion in positions were liquidated.

Bitcoin price stalled below $78,000 after a sharp move higher, while analysts warned that rising volatility could lead to more swings. Strong ETF demand has helped support the market even as some long-term holders sell at a loss.

Bitcoin Price Holds Despite Long-Term Holder Selling

Bitcoin price climbed to $77,600 before pulling back slightly, and it was trading around $77,178.62. The move came as some long-term holders sold their coins below their buying cost to raise liquidity.

Bitfinex, a well-known digital asset trading platform, tweeted that those coins changed hands at an average of 20% below their cost. Selling at a loss can put pressure on a rally by adding more supply to the market. However, the latest move has been different because strong demand has helped take in that supply.

Spot Bitcoin ETFs recorded $307 million in net inflows on August 21, as the SoSoValue Bitcoin Spot ETF data confirms. This extended the streak of daily inflows to five days. The figures show that buyers have continued to enter the market even as some existing holders have chosen to sell.