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
— IntoTheBlock (@intotheblock) January 27, 2022