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Can BTC endure the pain of the crossfire between STHs and market panic

Press Releases Crypto News AMB-Crypto Can BTC endure the pain of the crossfire between STHs and market panic

BTC short-term holders could be the reason for BTC’s latest price drop as per CryptoQuant’s latest analsysis
However, as of 10 May, market panic and FUD led to BTC dropping from $28k to 26k in an hour

There has been a lot of speculation in the market ever since Bitcoin [BTC] fell from its high of $29,703 on 5 May to $27,333 on 8 May. Although BTC exchanged hands 0.65% higher over the last 24 hours, its seven-day performance still flashed red at press time.

The fall of BTC could be a solid indication that there was massive ongoing selling activity in the market. As per the CryptoQuant analyst onchained, short-term holders could be blamed for BTC’s movement in the red.

Read Bitcoin’s [BTC] Price Prediction 2023-24

Can’t hold on to BTC anymore?

As per the CryptoQuant analyst, the analysis of Exchange Inflow Spent Outputs Age Bands (%) reveals which holders influence BTC’s price. BTC’s drop from $31k to 27k was a result of the increased inflow of BTC into exchanges. As per onchained, 58.33% of spent outputs, acquired between November to January, were transferred to exchanges.

These holdings were acquired between 15.4k to 18.3k and were held on for a period of 3 to 6 months. Furthermore, these holdings made a significant portion of the spend output.

Source: CryptoQuant

Additionally, the second significant age band that transferred their BTC to exchanges held onto it between a day and a week. This age band comprised 10.27% of the total outputs.

Contrary to the activity of short-term holders, the analysis pointed out that long-term holders took a different route. As seen below, long-term holders didn’t contribute much towards the spend outputs.

Spend output for holders of 6 to 12 months comprised 0.38%, whereas 0.12% output belonged to holders between 12 to 18 months. Furthermore, spend outputs for holders of 2 to 3 years stood at 0.3% and for 3 to 5 years stood

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Author: Aashna Dunwani

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