They could not resist the volatility of the bitcoin price. They entered the markets at the start of the year, seduced by the historic peak reached by the cryptocurrency. Having held 2,024 bitcoins for only a few months, they gave in to panic in the face of the collapse in prices and sold their BTC at a loss. In this context of FUD, experts explain why prices are collapsing and provide reassurance.
Bitcoin bull market not over, says Glassnode
Stormed by a massive correction that has lasted for several weeks, the price of bitcoin continues to collapse. Data collected by Glassnode reveals that 2024 BTC holders who entered the bull market are selling their crypto in panic, while prices are falling.
In newsletter published this Wednesday 1er May, James Check, principal analyst at Glassnode, notes that “recent buyers are statistically the most likely to panic.”
Indeed, these new holders need a bitcoin above $59,600 to start making their investment in crypto profitable. Unfortunately, the current decline has pushed the price of bitcoin below the base price at which these new holders purchased it.
As James Check points out, many bitcoin holders currently find themselves “under water,” that is, below the break-even point. We can understand that they panicked and sold their cryptos at a loss.
“It’s normal for the bitcoin market to collapse for a while”
According to on-chain data, losses on bitcoin sales have increased over the past two months with the cryptocurrency's high volatility. If he recognizes that the rapid descent of bitcoin is a bearish sign, James Check also specifies that it is not the sign of the end of the bull market.
The analyst puts previous increases into perspective and notes that bitcoin has not experienced a significant decline for a very long time. Indeed, since 2022, the crypto has not seen its price drop by more than 20% compared to its peaks. Yet other bull markets have repeatedly seen declines ranging from 20% to 30%.
It is therefore not particularly surprising that the prices of the parent cryptocurrency collapsed for a while. But when you know that the bull market may not be over, selling at a loss is definitely not a good idea right now.
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