Bitcoin Plunge Down Caused by This Group of Traders


article image

Arman Shirinyan

Track live crypto price of 10000+ coins!


The rapid loss of value for Bitcoin was caused by the minority of holders on the market

Contents

According to data provided by IntoTheBlock, a certain group of traders was responsible for the majority of selling pressure on the crypto market despite representing a minority of Bitcoin holders in general.

Short-term traders

As the Balance by Time Held indicator suggests, addresses that were holding Bitcoin for less than one month have decreased their supply by almost 40% in the last 40 days. The large selling pressure coming from the group is more likely tied to the sentiment in the crypto industry in general.

As historical data suggests, short-term holders were often responsible for the initiation of a bear trend in almost every case on the market. The reason behind it is the speculative nature of their investment. Short-term traders are usually private investors that “fomo” into the market during the latest stages of the bullrun.

Related:  Bitcoin Cash Price Prediction for Today, May 22: BCH Poises for Downing

In the case of the most recent sell-off, the majority of sellers on the market entered Bitcoin when it was trading at approximately $50,000. The large buying volume more likely took place during Bitcoin’s short-term bounce from $47,000 to $50,000 back at the end of December.

The sell-off itself started once the cryptocurrency dropped below the entry of the aforementioned traders. As the majority of stop-loss orders hit, Bitcoin has faced even greater selling pressure that launched it below $40,000.

Reasons behind panic selling

U.Today previously covered that the reason behind the majority of the market quickly turning from bullish to bearish was the change of sentiment on the global financial market due to strict changes in the monetary policy of the United States.

At press time, Bitcoin is trading at $36,657 and losing 0.26% in the last 24 hours.




Download MAXBIT Android App, Your best source of all crypto news!

Google Play

Source link