Data shows that short-term bitcoin holders sold large portions of their bitcoin holdings during the recent market crash.
According to data from IntoTheBlock, addresses that have held bitcoin for less than a month have reduced their holdings with bitcoin dropping by $10,000 in less than a week.
Bitcoin has gone through one of its worst corrections in the past few weeks.
Bitcoin was trading above $43,500 on January 20 before dropping more than $10,000 to a six-month low under $33,000.
During this turmoil, history shows that long-term bitcoin holders tend to hold on to their positions.
Some are even buying this drop, as evidenced by some whales and even the governments of countries like El Salvador that legalized bitcoin.
While those who have entered the market recently and are not used to bitcoin’s fluctuations and rapid price corrections feel differently.
As has happened many times in the past when the value of Bitcoin has fallen by double digits in a short time, these investors are dumping large portions of their holdings.
Something similar happened during the latest patch as well, according to IntoTheBlock data.
Data revealed that bitcoin investors who held bitcoin for less than a month reduced the total supply of bitcoin by 36% on a monthly scale.
IntoTheBlock concluded that these traders followed the Bitcoin price movement, and when the price started falling, they sold at a loss.
These are often described as weak hands and unable to hold bitcoin for longer periods of time.
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