The crypto market has been witnessing huge volatility for the past few weeks, and Bitcoin remains its main center. According to new on-chain reports, the recent sell-off in Bitcoin has been led by small investors and short-term holders, who are panicking and selling their holdings due to uncertainty in the market.
Table of Contents
- Bitcoin Fell by 9% in Two Weeks
- Who is Selling the Most? Wallet Data Reveals
- Is This a Shakeout Before the Next Big Rally?
- Price Volatility: Short-Term Outlook
- Lack of Confidence vs Patience in the Market
- Conclusion: What Should Investors Do?
Bitcoin fell by 9% in two weeks
The price of Bitcoin fell by about 9.01% between April 5 and 8. Currently, the price of Bitcoin is only 2.48% up compared to the beginning of April. The panic of small investors is being cited as the main reason behind this decline.
According to the CryptoQuant report, short-term investors are sending an average of 930 BTC to exchanges daily, while long-term investors are transferring only 529 BTC per day. This is a direct indication that long-term holders still have faith in the future of Bitcoin.
Who is selling the most? Wallet data reveals
Bitcoin holders are divided into five categories based on their wallet size:
- Shrimps – Those who have less than 1 BTC are selling around 480 BTC every day.
- Crabs – Wallets with 1 to 10 BTC are selling around 102 BTC daily.
- Fish – Investors with 10 to 100 BTC are selling 341 BTC every day.
- Sharks – Those who have 100 to 1000 BTC are selling around 402 BTC per day.
- Whales – Those who have more than 1000 BTC are selling only 70 BTC per day.
This data shows that small and mid-level investors are more worried about the future, while whales (large investors) have not been affected by the current market decline.
Is this a shakeout before the next big rally?
History shows that such panic is often seen before a big rally in Bitcoin, which is called a “shakeout” in the crypto world. This time too, some experts believe that this could be a temporary wave of selling and after this a new boom may begin in the market.
Data from CryptoQuant shows that smart money, i.e. long-term and large investors are still maintaining their positions. This indicates that they have confidence in the long-term prospects of bitcoin.
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Price volatility: Short-term outlook
Bitcoin price has increased by 3.1% in the last 7 days, and it has increased by 0.7% in the last 24 hours. However, volatility still persists in the market, especially among small investors.
Bitcoin is currently trading in a range of $82,711.41 to $86,460.73, and at the time of writing the article, it was priced at around $84,412. If this trend continues and the short-term sell-off ends, prices may stabilize or rise again.
Lack of confidence in the market vs. patience
The concern of small investors is understandable – they are often influenced by quick profits or losses. But the stability of whales and long-term holders shows that the fundamentals of the market are strong right now. Many times smart investors buy during such a decline, when others are engaged in selling.
Conclusion: What should investors do?
Looking at the current scenario in the market, it would not be wrong to say that panic is being seen only among investors with less experience. Experts advise that if you are a long-term investor, then there is no need to panic due to this type of volatility. However, small investors are advised to do proper research and strategy before entering the market.
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