What’s Really Pushing Bitcoin Prices Low?

Crypto Bears earlier took hold of the crypto market as Bitcoin tanked from its one-week high of around $58,500 before trading as low as $42,500 as the social media saga unfolded.

While the 48-year-old Billionaire, seems to be battling with the crypto community via Twitter, recent macros postulate Bitcoin’s unsurprisingly volatility is from another source, new crypto investors.

Present data from Glassnode, suggest new market entrants are responsible for the record sell-offs sighted in the crypto market as they sold and realized significant losses on their Crypto asset.

Consequently, data reveal the number of addresses holding a non-zero Bitcoin balance has also pulled back slightly by -3% from the recent all-time high of 38.7 million addresses. A total of 1.1 million addresses have spent all the Bitcoins they held during this correction, again providing evidence that panic selling is currently underway.

Adding credence to such bearish bias is another data revealing the number of Bitcoin on Crypto Exchanges just reached a 4-month high of 2,538,742.016 BTC.

A previous 4-month high of 2,538,289.611 BTC was observed on 18 January 2021.

Given the flagship crypto assets trades with a much bigger market valuation, thus suggest for Bitcoin to gain momentum it needs larger capital inflows with weak hands (retail investors) capitulating, and stronger hands (institutional investors) recommence their accumulation of Bitcoin at a fair value.

That being, recent price patterns reveal while many new entrants are selling at record levels, long term investors appear to be buying the dip and accumulating cheaper Bitcoins with the address known for accumulating Bitcoin (these are investors that have had at least two incoming transactions but have never spent any Bitcoin) gaining momentum.