Investors who entered the Bitcoin (BTC) market following the debut of exchange-traded funds (ETFs) are now facing substantial sell-offs as the cryptocurrency’s price stagnates. On Thursday, Bitcoin retreated to $58,000, reflecting a market trend influenced by recent entrants.
According to CryptoQuant, approximately $2.4 billion worth of Bitcoin, held between three and six months, moved within the network during the recent price decline. This surge in activity underscores that recently transferred coins are more susceptible to liquidation during market volatility compared to long-term holdings.
Many of these investors were drawn into the market by the excitement surrounding Bitcoin ETFs launched earlier this year. Despite initial inflows surpassing $13 billion in the first two months, the performance of these funds has aligned closely with Bitcoin’s muted price action since then.
Entities holding Bitcoin for over a year have displayed resilience, showing minimal signs of significant selling. LookIntoBitcoin data indicates a short-term holder realized price for Bitcoin around $64,614, suggesting a modest premium over current market prices.
Glassnode, a crypto analytics firm, reported a notable reduction in Bitcoin’s sell pressure compared to previous months, with more long-term holders opting to retain their BTC. James Check of Glassnode highlighted a marked decrease in Bitcoin’s “Value Days Destroyed (VDD) Multiple,” signaling a return to accumulation patterns. This metric evaluates near-term Bitcoin spending against its long-term average, emphasizing holdings with longer durations.
Related Topics:
