Despite historic crash in price, Bitcoin investors are still making profits but the new investors are losing out from the last week’s sell-off as data shows so let’s read more in our latest bitcoin news today.
However, the Glassnode data shows that most entities are making profits and this is because the sell-off was caused by the new investors that were panic-selling and they were never long-term holders. The BTC market suffered one of the worst crashes in 12-year history but despite the historic crash, most investors are still making profits. It is true that the crash can be blamed on panic selling according to Glassnode whose figures show that 73% of all BTC entities are in the black.
The “entity” is defined by Glassnode as a cluster of addresses that are controlled by the same network entity. The firm noted that the market experienced the biggest deleveraging event since March 2020 sell-off but when it was all said and done, the coin holders that lost turned out to be the bigger buyers from the past 3 months. In other words, even though BTC is trading at half the price of $64,000, most investors were here from the levels above $37,000. The report added:
“During this capitulation sell-off, however, the spending of 1y-3y old coins was actually significantly less and declining as a proportion of total activity. This suggests that old hands did not panic sell nor rush for the exits.”
The data shows that during the sell-off, the number of big whales that hold 10,000 or more BTC increased from 85 to 90 which means big-time investors see this as an opportunity to get more BTC. Still, there’s not a doubt that last week was tough for BTC and this happened due to a combination of factors ranging from Elon Musk tweets to China regulatory news which sent the cryptocurrency crash. BTC touched as low as $30,000 per coin which is a 52% drop from its all-time high in April. Overall, the data seems to indicate that there are people that a new to the investing and were shaken out of the market, as Glassnode said:
“There is no question that a large portion of the recent spending activity was driven by short term holders, those owning coins purchased within the last 6 months.”
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