Earlier today, the Bitcoin (BTC) price crashed to under $45,000 after Elon Musk raising speculations of Tesla possibly selling Bitcoins anytime ahead. Later Musk confirmed that Tesla hasn’t yet sold its holdings. However, the damage was already done.
As the FUD hit the crypto market, the on-chain volume shows that the short-term Bitcoin holders ended up booking major losses while losing their supplies to long-term holders and miners.
The net miner position and the net long-term holder positions continued to improve and remain positive. As on-chain data provider Glassnode reported:
The story of this #Bitcoin dip in 4 charts ⛓️
Most of the on-chain volume came from short-term holders that ended up capitulating at a loss 🪦
Meanwhile, long-term holders & miners are stacking sats at an increasing pace, clearly buying the dip 💪 pic.twitter.com/TSa37T17nV
— Dilution-proof (@dilutionproof) May 17, 2021
These short-term holders continued to deposit major Bitcoins to exchanges. As CoinGape reported, the Bitcoin exchange supply continued to surge during this period. At the other end, the Bitcoin (BTC) accumulation addresses also continued to surge further. Another on-chain data provider Skew also noted that Bitcoin’s implied volatility surged to a new 2021-high over the weekend.
— skew (@skewdotcom) May 17, 2021
Bitcoin (BTC) Dormant Coins Movement Turns Stagnant
Earlier today, on-chain data provider Santiment also noted that the recent dips in BTC and ETH prices are leading to stagnancy in the movement of dormant coins.
Before today’s Bitcoin price crash the BTC price was struggling to breach the $50,000 resistance. Over the last month, Bitcoin has continued to remain under pressure while altcoins were leading the market rally. While long-term holders have continued accumulating during this downturn, traders have been hesitant to buy the dips recently.
Recently, after Tesla and Elon Musk denouncing Bitcoin citing environmental concerns, Twitter CEO Jack Dorsey came to the rescue saying “bitcoin changes everything for the better”. He also added that they will continue to work forever to make the Bitcoin ecosystem better.
Jack Dorsey’s digital payments company Square has invested over $150 million in Bitcoins over the last few months. The company announced that there’s no change at all in its Bitcoin strategy.
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.