Short-term Bitcoin holders have started selling in unprecedented quantities.
On-chain data has drawn attention to Bitcoin, which has gained strength since the start of the week and is up about 3 percent. CryptoQuant IT Tech writer claims that short-term Bitcoin holders have left the market.
Despite short-term investors moving away from Bitcoin, long-term players continue to save. Data shows that these investors maintain their bullish sentiment.
US inflation data has increased speculation that the Federal Reserve will cut interest rates, which has had a positive impact on the price of Bitcoin $BTC Bitcoin has regained $58,000 after falling to $52,500.
Despite the positive outlook in Bitcoin, it was worth noting that Bitcoin miners were selling and short-term Bitcoin holders were staying away from the market.
“Short-term holders of Bitcoin have a more direct impact on the price and contribute to volatile price movements through selling.”
CryptoQuant’s research director Julio Moreno said that risk-averse investors may increase during a period when the negative correlation between Bitcoin and gold persists. The analysis, which shows an increase in investors willing to hold less volatile assets such as gold, also highlighted outflows in US stock markets. The bloodshed in the markets was attributed to short-term investors.
Short-term Bitcoin holders are selling at a loss. Traders who have held#BTCfor 155 days or less are reducing their positions due to concerns that prices could fall further. On the other hand, long-term Bitcoin holders continue to buy the asset.
The market continued its downtrend as Bitcoin price was trading below the 50-day and 100-day simple moving averages #BinanceTurns7 #MarketDownturn
