Fed Cut Triggers 10K Bitcoin Sell-Off – Yet Zero Panic From Long-Term Holders

Bitcoin (BTC) and the broader crypto market slipped into the red following the Federal Reserve’s recent 25bps interest rate cut, igniting a familiar debate across trading desks: is this simply a “sell the news” shakeout, or the early stages of a more sustained downturn — a possible prelude to another crypto winter? BTC is currently struggling beneath the $110,000 level, signaling uncertainty and hesitation among traders as volatility rises and sentiment ￰0￱ initial optimism that typically follows pro-liquidity policy shifts was overshadowed by renewed selling pressure, suggesting that markets may be recalibrating after months of aggressive speculative positioning and a historic liquidation earlier in ￰1￱ now, analysts are ￰2￱ argue this pullback reflects normal market digestion following a major macro catalyst, consistent with previous rate-cut cycles where risk assets dipped before resuming ￰3￱ warn that loss of key technical levels may open the door to deeper downside if demand fails to re-emerge ￰4￱ Bitcoin hovering near critical support and macro conditions in transition, the coming weeks are expected to be ￰5￱ this move marks a temporary flush or the start of a broader risk-off phase will likely define the next chapter of the crypto cycle.

Short-Term Speculators Drive Sell-Off as Long-Term Holders Stay Strong According to a recent CryptoQuant analysis by CryptoOnchain, the sharp market drop on October 30th was driven overwhelmingly by short-term traders rather than long-term ￰6￱ volatility surged, more than 10,000 BTC flowed into Binance — typically a bearish signal, as rising exchange inflows often precede selling ￰7￱ digging deeper into the on-chain data reveals a very different story beneath the ￰8￱ Spent Output Age Bands (SOAB) metric shows that 10,009 BTC of that inflow came from coins held for less than 24 ￰9￱ other words, nearly the entire wave of selling originated from “hot money” — short-term traders reacting emotionally and quickly to macro headlines and market ￰10￱ are speculative participants, not long-term strategic ￰11￱ contrast, inflows from Long-Term Holders — coins held for six months or more — were ￰12￱ market’s most resilient participants, often referred to as diamond hands, did not rush to ￰13￱ did not send BTC to exchanges, did not panic, and did not contribute to the ￰14￱ divergence is ￰15￱ confirms that the sell-off was a liquidity flush, not a shift in long-term ￰16￱ psychology, not fundamentals, drove the ￰17￱ from signaling the start of a crypto winter, this pattern aligns with historical shakeout behavior seen before larger continuation ￰18￱ short-term holders capitulate while long-term holders remain steady, it typically reflects market cleansing rather than structural ￰19￱ short, on-chain signals suggest the foundation of the market remains strong — and this correction appears to be a clearing event, not the beginning of a long-term ￰20￱ Holds Mid-Range on 3D Chart Bitcoin (BTC) is currently trading around $109,800 on the 3-day timeframe, holding mid-range after a volatile month marked by macro reactions and leveraged ￰21￱ recent downside pressure, the broader structure remains intact, with BTC still comfortably above the 100-period moving average (green line) and well above the 200-period moving average (red line) — signaling that the long-term trend remains ￰22￱ continues to consolidate between $108,000 support and the critical $117,500 resistance zone, which has acted as a major supply barrier throughout this consolidation ￰23￱ attempt to break above $117,500 has been met with selling, confirming it as the cycle’s Point of Control and the key level for bulls to reclaim to regain ￰24￱ the downside, the $108,000–$105,000 area has repeatedly served as a demand region, supported by buyers stepping in during ￰25￱ that zone on the 3D close would introduce risk of deeper correction toward $100,000–$102,000, where structural support and prior breakout levels ￰26￱ image from ChatGPT, chart from ￰27￱