Bitcoin Long Term Holders Number Grows to Monthly High

Published May 19, 2021 | Updated May 19, 2021

In Brief
  • Bitcoin tanks to a 14-week low as price falls below $40,000.
  • The recent sell-off is believed to be the result of panic selling among short-term holders as long-term holders reach another monthly high.
Bitcoin
Source: Pixabay

Bitcoin Long Term Holders Number Grows to Monthly High

  • Bitcoin tanks to a 14-week low as price falls below $40,000.
  • The recent sell-off is believed to be the result of panic selling among short-term holders as long-term holders reach another monthly high.

Bitcoin price today crashed below $40,000 to register a new 14-week low amid panic selling from short-term holders. The price crash also led to a correction of 40% since the last ATH of $64,683 marking the biggest correction this bull season. While new traders are panic selling owing to several FUDs in the market, long-term holders with over 1 year of holding time have continued to surge even during these times and rose to a monthly high.

The fear and greed index has reached a level of ‘extreme fear’ reflecting short-term market sentiments. A correction of near 40% was always on the cards given the mammoth rise over the past four months. Mike Novogratz, even called it a ‘tax day’ for traders who made a ton of profit.

A 40% correction for sure is a cause of worry for many, but those who have seen the 2017 market do not seem much bothered, as last time around the market was much more volatile and several corrections of over 30% were recorded in a much shorter period.

Bitcoin Correction Wipes Out Tesla’s Entire Profit From $1.5B BTC Purchase

The recent panic selling among new investors was largely attributed to several FUDs that resurfaced over the past couple of weeks. The first one came from Elon Musk who turned from a Bitcoin Hero to Villan within a couple of months. Tesla stopped the Bitcoin payment option for their cars citing environmental concerns and Musk tried justifying the dubious FUD resulting in a Twitter war that led him to threaten to sell all his Bitcoin for Dogecoin.

Many started speculating that Tesla might have sold its Bitcoin holdings and that is the reason Musk has gone rogue trying to tank the market. however, he clarified that the electric car manufacturer is still holding to their Bitcoin.

Tesla had made nearly $2 billion in profits when BTC reached its ATH last month, and if it didn’t sell its holdings their profit is completely wiped off at this point.

 

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

Subscribe to our newsletter for free

Prashant Jha 669 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
Follow Prashant @