Although Bitcoin (BTC) has corrected about 50% against its historic high of almost $65,000, most investors continue to profit. According to a recent report by Glassnode, even with the drop to the $30,000 zone, about 76% of bitcoin holders are profiting.
According to Glassnode, veteran investors did not despair during the fall. After all, most kept their cryptocurrencies purchased before the crash.
On the other hand, investors who are in the red (24%) are mostly novice buyers. That is, those who acquired BTC in the last six months and sold with a low price.
The market fell more than 47% from the $59,463 high, reaching a low of $31,327 in less than 2 weeks.
This drop of $28,136 in absolute numbers is the largest in history, including the corrections seen in March 2020 and November 2018.
The movement was generated by a “bath of FUD”, as Glassnode classified it. FUD is the term used to abbreviate “fear, uncertainty and doubt”, attributed to negative rumors whenever the cryptocurrency market is booming.
Newbies, who bought in the past six months, rushed to sell their cryptocurrencies after the crash.
“The exit time bands show that periods of 1 to 3 months and 3 to 6 months, in particular, have increased substantially more than the typical baseline before and during settlement.”
Thus, according to Glassnode, there is no doubt that a large part of recent sales has been driven by short-term holders.