Glassnode's latest insights lay bare the tumultuous journey Bitcoin embarked on in the past 24 hours. The breach of the SEC's Twitter/X account, instigating false news of Bitcoin ETF approval, triggered a $2 billion flood into Bitcoin and led to losses totaling $750 million, causing significant market upheaval.

Glassnode's report sheds light on a market landscape characterized by heightened exchange activity, with 76.4% of Bitcoin's on-chain volume flowing through exchanges, just below the all-time high of 77.4%. The surge in exchange activity was a direct consequence of the SEC Twitter/X account compromise, unleashing misleading information that propelled Bitcoin to around $48,000 before swiftly plummeting to $44,900. The resulting turbulence prompted the liquidation of both short and long positions.

Complicating matters further, short-term Bitcoin holders, those with holdings of less than 155 days, mobilized a substantial portion of their profits. An astonishing $1.3 billion was sent to exchanges, marking one of the most substantial profit transfer days in the past two years.

Examining the broader impact, the total inflow to exchanges reached an astronomical $2 billion worth of Bitcoin, a magnitude witnessed only three times before in Bitcoin's history. However, the celebratory nature of these transfers was tempered by the stark reality that a significant chunk—$750 million—was sent at a loss.

The severity of the market upheaval becomes apparent in response to the false ETF approval news, with investors engaging in a frenzied dance that left a substantial portion counting the costs of their actions.

Yesterday's discussions in the crypto market revolved around the surge in Bitcoin's value, driven by expectations of a Bitcoin ETF approval. However, Mike McGlone, a senior macro strategist at Bloomberg Intelligence, warned of a potential downturn for Bitcoin in a conversation with crypto influencer Scott Melker. McGlone expressed apprehension about the historical tendency of risk assets, including Bitcoin, to face a downturn following significant rallies, citing past events such as the fall of Lehman Brothers and the collapse of FTX to underscore the inherent risk associated with Bitcoin's current market position.