Long-term crypto investors showed resilience as BTC collapsed on January 3
Long-term crypto investors showed resilience as BTC collapsed on January 3
Wednesday's collapse in the Bitcoin price on concerns that the U.S. Securities and Exchange Commission (SEC) would not approve a spot Bitcoin ETF had no impact on long-term BTC holders.
CryptoQuant analyst and trader Yonsei Dent discussed how short- and long-term investors reacted to the recent ETF-related news.
Yonsei Dent said that despite the collapse of the BTC price from $45,000 to $40,000 on January 3, current levels are stabilizing around $43,000.
The analyst, based on SOAB (Spent Output Age Bands) and USD indicators, pointed out that short-term holders (STH) in the 1-day to 6-month range have spent nearly $1 billion, exiting the market near breakeven levels, CoinGape reported.
Holders in the 1-month to 3-month range who bought BTC at prices ranging from $26,000 to $42,000 spent approximately $550 million while making a profit.
However, there was minimal movement in the 3-month to 6-month range. Long-term holders (LTH) in the 3-month to 6-month range sold $7.6 billion worth of assets on fears of further price declines.
Meanwhile, the 1-year to 5-year holder category showed little reaction, demonstrating the resilience of long-term investors.
It's worth noting that the number of "Buy the Dip" mentions on social media rose to 323, the highest since March 25, 2022, according to Santiment data. The spike came after the price of Bitcoin plummeted to $41,000 in a matter of hours.
While the spike in "Buy the Dip" mentions indicates bullish crowd sentiment, it had previously led to another price pullback.
Markets are speculating that if Matrixport's prediction comes true and the SEC rejects all applications for a spot Bitcoin ETF in January, the price of Bitcoin could fall to $36,000.
Related: The U.S. intends to issue Bitcoin Depositary Receipts
