Sudden price decreases in the Bitcoin market have led to major losses for short -term investors. According to Cryptoquant’s new research, Bitcoin Speculators have damaged a total of 100 million dollars due to panic sales in the last six weeks.
Short -term investors (STH), especially for one to three months Bitcoin investors, withdrawn from the market with great damages, unable to withstand hard market fluctuations.
Bitcoin investors sell at a loss
The corrections of Bitcoin in the last bull market have caused many new investors to harm. According to Cryptoquant data, investors who have purchased Bitcoin in the last six months are estimated to face a total loss of $ 100 million.
Cryptoquant Analyst Onchained said that most of this group of investors received Bitcoin at higher prices and realized their damages by panic in the face of price decreases.
The report contains the following statements:
Bitcoin’s market value (MC), which is held by investors, fell below the realized capital value (RC) calculated based on the prices they purchased. This shows that investors sell with damages.
The continuation of this trend can increase sales pressure on the market and cause a short -term drop trend in the price of Bitcoin.
The realized value of Bitcoin is dramatic
The graphics accompanying the report show that Bitcoin has an unprecedented size decrease in recent months.
In addition, the Net -Unrelated Snow/Loss Index of Bitcoin investors is currently at -0.19. This shows that most of the Bitcoins in the hands of investors are at the loss and reached the lowest level of the last year.
Is the decline in the Bitcoin price herald a greater correction?
As of February, Bitcoin experienced a decrease of up to 30 %from the highest level of all time it reached in the middle of January.
As seen before, such sudden corrections coincide with periods in which speculative investors realized their losses. While the market turns to sale with fear and panic, large -scale investors (whales) continue to accumulate Bitcoin by seeing these decreases as an opportunity.
According to Cryptoquant’s weekly report dated March 12, the current correction may be more than a superficial decrease. In the report, “Historically, the corrections in the bull markets are short -term and usually results in strong recovery. However, the existing chain indicators point to a structural change that can indicate a wider decline tendency ”.
Although it is unclear how Bitcoin will follow in the coming period, it is clear that investors should be cautious against sudden changes in price movements.
Follow us on Twitter, Facebook and Instagram and join our Telegram and Youtube channel!
