New data: Short-term bitcoin investors have sold one-third of their holdings at a loss

Intra-chain data show that during the recent collapse of the digital currency market, short-term bitcoin investors sold a significant portion of their assets at a loss. However, long-term investors have not shown such behavior.

To Report Crypto Potito, data from IntoTheBlock analytics site show And sold their bitcoins.

Bitcoin has undergone one of the worst corrections in its history in the last few weeks. The digital currency traded above $ 43,500 until January 20, but then lost more than $ 10,000, hitting a six-month low of $ 33,000.

History shows that long-term investors invest in such conditions. Some investors also buy in the price floor. During the recent fall of Bitcoin, the Whales and the Government of El Salvador did the same, as the first country to adopt Bitcoin as its official currency.

However, those who have just entered the market and are not yet accustomed to large fluctuations and rapid correction of bitcoin prices feel differently.

As we have seen in the past, when the value of bitcoin falls by more than 10% in a short period of time, such investors sell their assets and lose a large part of it. The same thing happened during the recent bitcoin reform, according to Into De Block.

Using the Bitcoin Address Inventory Index, the company notes that investors who hold their bitcoins for less than a month have reduced their inventory by 36 percent over the previous month.

The analytical company said:

These traders have followed the price of Bitcoin and started selling their digital currencies at a loss as the market began to decline.