Bitcoin started August on a bearish note, but the downturn appears to have stemmed from spot market activity rather than a wave of forced liquidations in derivatives markets.

Over the past 24 hours, the flagship digital asset dropped by more than 3% to under $115,000, resulting in over $200 million in market liquidation.

Glassnode data reveals that recent sellers in this market condition were predominantly short-term holders.

Of the $21.34 billion in BTC that changed hands during the period, 85.5%—roughly $18.24 billion—was attributed to investors who acquired their coins within the last few months. In contrast, long-term holders accounted for only 14.5% ($3.10 billion) of the volume.

This trend suggests the pullback was driven more by newer market entrants reacting to price weakness than by institutional or long-term investors exiting the market.

Despite the sell pressure, the broader market remains largely in profit.

According to Glassnode data, the Percent Supply in Profit, representing the share of circulating BTC currently in profit, has stayed above 90% for over a month. While this reflects broad unrealized gains, it also signals rising pressure to take profits.