Besides burning billions of dollars in the global market cap, the FTX also so wiped out the confidence of even the most convinced Bitcoin holders.
The market has been witnessing strong selling pressure since last week, pushing Bitcoin price to as low as $15,500.
Looking at Bitcoin ownership changes between short-term holders (STH) and long-term holders (LTH), we can see where the selling pressure came from.
Historically, STH were the first to sell their coins when the market turned red. However, the ongoing volatility does not affect STH as much as previous market movements. Data from Glassnode shows that FTX has seen only the fifth-largest number of STH sellers since March 2021. Around 400,000 BTC belonging to STH were sold between November 10 and November 17.
The ongoing market meltdown has not shaken the confidence of LTH.
The analyzed data shows that those holding coins longer than six months sold less than 100,000 BTC in the past week. This is significantly smaller than the selling pressure caused by Russia’s invasion of Ukraine in February and the fall of Luna in June.
The fact that most long-term holders remain unaffected by market volatility is not surprising. Statistically, holders in this group are the least likely to sell BTC and have long created the strongest resistance for its price.
What is surprising, however, is that addresses that have held Bitcoin for more than ten years appear to be the ones most affected by the crisis. Even though their 3,600 BTC sold in the past week is down from the spending volume generated by STH, it is still the most that these extremely long holders have ever sold.
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