Bitcoin Crash to $104K Was ‘Flush,’ Not Crypto Cycle ‘Failure’

Why It Matters

The episode underscores near-term volatility and potential buying opportunities but poses risks to sentiment and institutional inflows until long-term holder selling abates.

Summary

Bitcoin plunged to $104,000 in a four-day sell-off that Glassnode characterizes as a “flush” rather than a failure of the crypto cycle, signaling a healthy market reset. On-chain data show increased selling by long-term holders, constraining momentum until that supply pressure eases. The episode underscores near-term volatility and potential buying opportunities but poses risks to sentiment and institutional inflows until long-term holder selling abates.