Bitcoin on Monday rolled back to its lowest level in 20 weeks of about $ 42,000 amid statements by Tesla CEO Elon Musk about the termination of accepting cryptocurrency and the possibility of selling it. At the same time, the short-term profitable spending of transaction outputs (SOPR) ratio fell below 1. This suggests that bitcoin holders moved coins at a loss for themselves relative to the enrollment price, with most of such enrollments recorded in the last 155 days, that is, during the rise market. The long-term SOPR remains above 4.
The whole market recorded losses, but short-term holders are more
The total number of non-zero-balance bitcoin addresses also fell 2.8% from a recent high of 38.7 million.
“A total of 1.1 million addresses spent all their coins during this correction, which is further confirmation of panic selling,” Glassnode notes.
Reducing the number of addresses with non-zero remainder
Analysts also state that a similar situation was observed at the peak of the bull market in 2017. Markets usually peak when a significant portion of assets are concentrated in the hands of new holders.
Dynamics of change in the volume of coins in the wallets of new holders
The share of coins in new holders recently reached 28% of the total circulating volume of bitcoin, which corresponds to 5.3 million BTC. According to Glassnode estimates, bitcoin has lost about 30% from the high of $ 63,600 recorded on April 13 – this was the deepest correction during the current bullish cycle. The cryptocurrency has already managed to win back 5% amid easing sellers’ pressure and the exit of panic-stricken investors.
“Most of the volume at the blockchain level came from short-term holders who capitulated at a loss. Long-term holders and miners at the same time continued to accumulate assets near the lows, ”notes Twitter user Dilution-proof.
Growth in the volume of assets of long-term holders
“The Bitcoin market is undergoing a historically significant correction. In almost complete contrast to the panicky selling of new investors, long-term holders appear to be buying on the pullback and accumulating cheaper coins, ”confirms Glassnode. At the same time, analysts emphasize that bitcoin is still significantly above the peak of the previous bull market, therefore, more serious capital injections will be required to restore the rate.
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