Bitcoin Rebounds Above $64K as Short-Term Holders Flip to Accumulation

Bitcoin's price has recovered above $64K after a brief dip to $62,466 on July 31st. The sell-off was largely driven by concerns over the Coldcard hardware wallet hack and panic selling from short-term holders (STH). However, STHs have since flipped to net purchases of roughly 3,150 BTC on August 3rd, indicating a shift from selling to accumulation.

A closer look at the chart shows that the selling was mostly panic-driven, with long-term holders (LTH) also realizing profits. The Spent Output Profit Ratio (SOPR) has surged to a fresh high of roughly 0.9355 since July 21st, indicating heavier selling from LTH. However, this selling needs to cool down and settle into consolidation before the market can steady.

The spot market has not welcomed the rebound, with traders leaning towards profit realization across the board as Bitcoin recovered. The US demand has pulled in the other direction, with the US spot Bitcoin ETFs drawing stronger buying, a daily netflow of $170.09 million on August 3rd.