Data Shows Young Bitcoin Addresses Sold 36% of Their Holdings at a Loss
According to data from IntoTheBlock, addresses holding BTC for less than a month decreased their supply as bitcoin slid by $10,000 in less than a week.
Bitcoin went through one of its worst corrections in terms of its USD value in the past few weeks. The asset traded above $43,500 on January 20th before it dumped by over $10,000 to a six-month low beneath $33,000.
During such turbulence, history shows that long-term BTC holders tend to stick to their positions. Some even buy the dip, which is evident by some whales and even the first country that legalized the asset – El Salvador.
However, those who have entered the market more recently and are not accustomed to bitcoin’s enhanced volatility and rapid price corrections feel differently.
As it has happened numerous times in the past when BTC’s value declined by double-digit percentages in a short time, such investors dispose of large portions of their holdings.
Something similar transpired during the recent correction as well, according to data from the blockchain analytics company IntoTheBlock.
The resource’s Balance by Time Held Indicator revealed that bitcoin investors holding for less than a month reduced their total BTC supply by 36% on a monthly scale.
IntoTheBlock concluded that these traders “followed the price action of BTC, and as the price started to fall, they sold at a loss.”
Who’s been selling #Bitcoin?
Our Balance by Time Held Indicator shows how the traders – addresses holding for <1m, decreased their supply by 36% over the past 30 days
These traders followed the price action of $BTC, and as the price started to fall, they sold at a loss pic.twitter.com/zHaocHj0Yj
— IntoTheBlock (@intotheblock) January 27, 2022
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