• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news Bitcoin

Bitcoin’s $35 Billion Plunge Caused by Short Term Holders, Data Suggests

Rick Delafont by Rick Delafont
2 years ago
in Bitcoin, Cryptocurrency news
Reading Time: 2min read
roller bitcoin
Advertisement

Earlier this week, the price of Bitcoin crashed from above $10,000 to a low of just over $7,900. The abrupt drop seems to have caused an abrupt shift in the sentiment surrounding the industry.

With the much-anticipated Bakkt platform’s launch coinciding with the start of the downtrend, many optimistic for the ICE-owned venture’s impact on the market have been left scratching their heads. Although not providing reasons for the selloff, on-chain data suggests that much of the downside pressure was from short-term Bitcoin holders.

Long-Term Bitcoin Holders Unmoved by Swings

According to data provided by GlassNode Studio, the recent selloff in the Bitcoin market has been caused by short-term holders of the cryptocurrency. The firm’s researchers have reached these conclusions by looking at two on-chain metrics.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

The first is Average Spent Output Lifespan. This measures the average age in days of spent transaction outputs on the Bitcoin blockchain. Currently, the average age of a spent transaction outputs is between 36 and 37. This is reasonably low compared to much of Bitcoin’s history, meaning that more satoshis are spending less time in the same place (i.e. few long-term holders are hitting the market).

According to #onchain metrics, #Bitcoin's recent drop to $8k doesn't seem to have been caused by long term holders.

The average age of moved coins is between 20-30 days & CDD hasn't deviated significantly.

This was likely due to short term $BTC holders.https://t.co/GyiQGuZUJY pic.twitter.com/cjix8bOiBM

— glassnode (@glassnode) September 27, 2019

The second metric identified by GlassNode Studios is called Coin Days Destroyed. This provides the number of days each coin has stayed unmoved at the time a transaction is executed. If an individual transacted 5 BTC that had been in the same wallet for exactly one year, that transaction would represent 1,825 coin days destroyed.

Again, this metric shows that there is more activity from newly moved coins than there is from long-term holders surrounding the sudden crash. However, there was a brief spike, consistent in size with numerous other spikes over the course of the year, on September 24.

The data clearly suggests that the selling pressure behind Bitcoin’s $30 billion crash this week is from short-term holders and the rapid drop certainly coincides with the launch of Bakkt. It therefore seems a reasonable assumption that some investors had bought up Bitcoin recently in anticipation of Bakkt igniting a massive bull run. When the market started trending down slightly following the launch, these short-term speculators promptly ditched the digital asset.

Interestingly, although US Dollar Tether, the controversial stablecoin, recently took the fourth spot on the top ten cryptocurrencies by market capitalisation list provided by CoinMarketCap, its rise to its $4.129 billion market cap has been more measured. That said, on the very day of the crash, a large spike in Tether trading volume occurred, as the apparent stablecoin lost its dollar peg to the upside, reaching $1.02 per USDT. Its market capitalisation also increased and decreased rapidly in tandem with the moves in the other metrics.

Tether volume, price, and market cap spike on September 24.

 

Related Reading: Did Bakkt Cause The $10 Billion Crypto Market Crush?

Featured Image from Shutterstock.
Tags: bakktbitcoinOn-chain metrics
TweetShare
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Rick Delafont

Rick Delafont

Based in Europe, Rick has written about the cryptocurrency industry since 2016. He was first drawn to Bitcoin as a means of payment but quickly became fascinated by its wider potential implications. His interests lie in the political, economic, and social impact of the unfolding digital asset revolution.

Related Posts

bloody bitcoin

Coinbase COIN Debuts To A Bloody Bitcoin, But Bullish Structure Remains

4 hours ago
Has The NFT Bubble Popped? Prices Down 65% While Ecologists Sharpen Knives

Has The NFT Bubble Popped? Prices Down 65% While Ecologists Sharpen Knives

5 hours ago
Stellar Lumens XLM XLMUSDT

How Stellar’s Growth In Q1 2021 Could Foster Further Adoption

7 hours ago
Ripple XRPUSDT

This Is What Gensler’s Confirmation Could Mean For XRP

9 hours ago
Cardano ADA ADAUSDT

Why Cardano Could Be The Next Runner Up To Ethereum

10 hours ago
easyfi

EasyFi Introduces Tokenized Stocks and Commodities in Partnership with Mirror Protocol

11 hours ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
Bybit

Bybit

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Top ICOs

Student Coin

Student Coin

Review · Visit

Token sale

Holdefi

Holdefi

Review · Visit

Press Releases

Crypto Exchange Platform AAX Reveals HKD, SDG, and GBP as the Top Three Fiat Currencies Deposited In April

April 14, 2021

Polkadex IDO Launches On Polkastarter on the 16th of April

April 13, 2021

Fast-Growing Exchange Bityard to Launch Its First Contest for Global Traders

April 13, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Invest BTC
  • Join STC ICO

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.