According to the latest Blockchain data regarding the Bitcoin market correction, it is apparent that Bitcoin’s 35% plunge from the peak record of $64,000 might have been driven by hasty investors that sold off their crypto stock after accumulating it during this recent bull market.
Glassnode, the blockchain data analytics firm, posted on Monday stating there are heavy signs suggesting that short-term holders are to account for the majority of panic selling. The post also hinted at the fact that Bitcoin now stands with a historically significant correction. But this can largely be contributed to the size of the original pump.
As of now, Bitcoin has steeply dropped 9.65%, with prices hovering at $42,860 in the past 24 hours, according to CoinDesk. The abrupt plunge was the result of tweets made by the Chief Executive of Tesla, Elon Musk after the billionaire investor did not clearly deny nor elaborate on whether the electric-car maker company had already sold or were selling off its $1.5 billion worth of Bitcoin holdings. However, later on, Musk made it clear that Tesla did not sell any of the Bitcoin holdings.
Bitcoin fell by approximately 13% with the prices plunging more than $6,000 on Coinbase exchange, as reported by TradingView on Wednesday. The drop was caused by another tweet made by Elon Musk where the Tesla CEO announced that electric-car Company will no longer accept bitcoin payments due to environmental concerns.
The Short-term holder SOPR, which filters any coin younger than 155 days, has dropped under 1 the main threshold, implying new entrants to the market are panic selling, and have incurred severe losses on their investments, reported Glassnode.
At the same time, long-term holders are buying the latest drop with the rise in the accumulation of bitcoin addresses. The count of non-zero balances has fallen below 2.8%. A large inflow of capital is required to push Bitcoin into full-price recovery, reported by Glassnode.