$1.2B Worth of BTC Leaves Coinbase as it Records Highest Bitcoin (BTC) Sell-off in a Week

 

Over the past week, Coinbase recorded a significant increase in sell-off and a large percentage is said to be accounted for by long term holders. Even though this happened, bitcoin Short-term supply is taking a different turn to largely long term supply.

Coinbase is widely known and accepted among the many largest cryptocurrency exchange and this outflow looks like the highest sell-off it has recorded since 28-July-2017

Hodling is the preferred strategy employed by short term Bitcoin holders even though the sell-off happened which popular opinions predict will bring about a large pull out from the market. Holding remains the most employed investing strategy.

Glassnode analytics report that over last week through the weekend, there was a drop in the total balance of Coinbase’s total BTC.

Most of this transaction was recorded to belong to long term holders. Report says the sell-off was caused by uncertain economic issues, and this is affecting a lot of short term holders to sell out.

Recently though, short term holders are crossing and deciding to hold their coins for more than 6 months. Glassnode reports that although the general number of short term holders keeps declining, it isn’t as a result of selling but because they are becoming long term holders. It’s a commonality for short term holders to sell their coins but this has not been the case.

Glassnode reports that most investors in bitcoin are holders. About 75% of Bitcoin circulating supply has been untouched for the last 180 days. Even though, there has been an overall sell pressure recently but this doesn’t indicate a bear market. It doesn’t at all. If Short term holders decide to not sell off and hold for the long term, the market could be profitable for them.

31,130 BTC left Coinbase last week where long term holders were selling off but there hasn’t been a significant move up or down in the market says Glassnode.

The ratio of profit/loss for short term holder supply has reached the all term low which happened around June-July 2021. About 80% of coins currently held by short term holders are held at loss which will eventually provoke a bear market when new investors choose to hold for the long term and they are anticipating a profit margin return. Every now and then, investors come into the market fully anticipating the good side of the market, this shouldn’t turn out to be one where they lick their own wounds when it shoots over the border for them.

The strategy employed by short term holders better work out so that the cycle of new investors can come into and cause a balance in the market has it should have been without the recent economic issues.

This is a sign of bitcoin’s reputation increasing and becoming a necessity for a modern man’s portfolio, an update from BTC shows.

Coinbase as a popular exchange agrees that with the massive sell-out, the market looks to turn a positive direction.


Return to Homepage | Sitemap | Sign Up Here