Short-term Bitcoin holders were behind the sell-off to below $36k


On-chain data shows that near-term Bitcoin holders appear to be behind the latest sell-off that has pushed the crypto’s price below $36k.

Bitcoin investors with coins between 1 day and 6 months that sold big yesterday

As noted by an analyst in a CryptoQuant aftershort-term holders seem to have sold the most during the recent sell-off.

The relevant indicator here is the “exchange inflow”, which measures the total number of coins going into the exchange wallets.

A modification of this statistic is the “exchange inflow spent output age ranges.” it tells us how much the different groups of Bitcoin holders contribute to the influx.

The different groups are divided based on the number of days the investors held their coins before putting them on the exchange.

The age group for coins from 1 day to 6 months is generally considered the “Short Term Holders” (STH). This cohort is usually the most likely to sell their coins.

All investors who hold their Bitcoin for an extended period of time are the “long-term holders” (LTH). Here is a chart showing the trend in the influx of age groups under 6 months and between 6 and 18 months in the past few months:

Looks like STH influx has recently surged | Source: CryptoQuant

As you can see in the chart above, the age group for coins from 1 day to 6 months sent a lot of coins yesterday.

The peak influx was over 60k coins transferred by this group. Investors usually send their Bitcoin to exchanges for selling purposes, which is why these coins took part in the sell-off which has now brought the price below $36k.

Related literature | One Coin, Two Trades: Why Bitcoin Futures and Spot Signals Don’t Match

The 6-month to 18-month group, on the other hand, doesn’t seem to have moved too many coins in the past day.

The older Bitcoin LTH groups have not shown much activity lately either. The chart below shows the trend in their influx.

The 1.5 year to 3 year cohort appears to have sold only about 500 BTC yesterday | Source: CryptoQuant

From these trends, it seems that the only investors who took part in the sale yesterday were the short-term holders, who are generally the more volatile. The long-term holders still seem to be strong.

Related literature | Bitcoin Long Squeeze incoming? Financing rates skyrocket

BTC price

At the time of writing, Bitcoin price is hovering around $35.8k, down 8% over the past seven days. In the past month, the crypto lost 21% in value.

The chart below shows the trend in the price of the coin over the past five days.

Bitcoin price seems to have fallen in the past day | Source: BTCUSD on TradingView

Featured image from Unsplash.com, Charts from TradingView.com, CryptoQuant.com

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