Bitcoin Long-Term Holders Stand Strong Despite Recent Crypto Market Selloff

In the face of a recent sell-off in the crypto market triggered by concerns over the SEC’s potential rejection of Spot Bitcoin ETFs, Bitcoin’s long-term holders, appear unfazed. Yonsei Dent, a prominent crypto trader and verified author at CryptoQuant provided a unique perspective on the market dynamics, revealing intriguing insights into how both short-term and long-term investors reacted to the recent ETF-related news.

Bitcoin Long-Term Holders Maintain Position Despite Market Volatility

Prominent crypto trader Yonsei Dent analyzed the BTC market upheaval on January 3rd, triggered by negative news on the spot Bitcoin ETF. Despite the price plunge from $45,000 to $40,000, current levels stabilize around $43,000.

Meanwhile, the analysis, shared by CryptoQuant on the X platform, delves into investor behavior using the SOAB (Spent Output Age Bands) and USD indicators. Notably, short-term holders (STH) in the 1 day-6 month range spent nearly $1 billion, while exiting near Breakeven, the analysis showed.

On the other hand, the 1 month-3 month cohort, who bought BTC at the range of $26,000-$42,000, consumed approximately $550 million, realizing profits amid volatility. However, the 3M-6M cohort showed minimal movement.

Surprisingly, the analysis showed that the long-time holders (LTH) in the 6M-12M range sold $7.6 billion, anticipating a stronger market decline. In contrast, the 1 year-5 year group displayed little reaction, indicating resilience among investors “who endured the 2019-2022 cycle”.

Also Read: Terra Luna Classic Proposal To Burn 8 Million USTC Officially Rejected

The Recent Crypto Market Sell-off

The crypto market has witnessed a hefty selloff on January 3, amid hovering market uncertainties. Meanwhile, almost all the major cryptos have experienced significant declines, reflecting the downturn momentum witnessed in the market yesterday.

Meanwhile, adding to the crypto community’s concerns, Matrixport’s forecast on Bitcoin’s price and the SEC’s potential rejection of Spot Bitcoin ETFs has created ripples. The prediction anticipates a rejection of all Spot Bitcoin ETF applications in January, possibly leading to a sharp decline in Bitcoin’s value to as low as $36,000.

Simultaneously, this forecast has fueled anxiety, contributing to a significant liquidation of over $700 million in the crypto market over the last 24-hour time frame yesterday, with almost $500 million liquidated in just one hour.

Also Read: Crypto Enthusiasts Fire Back At IRS’s Controversial $10K Reporting Rule

Source