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Bitcoin Newbies Panic Sell at Loss, While Veterans Hodl

1.1M-noobs-panic-sell,-but-Bitcoin-hodlers-DGAF
  • Newbie crypto holders are selling their coins at a loss.
  • However, a Glassnode report showed that veterans are hodling.
  • The coin dump is in response to the current crypto market slump.

The recent crypto market slump has triggered newbies into panic selling their coins at a loss. In comparison, crypto veterans remain unphased and committed to hold.

The differing responses were reported by Glassnode, an on-chain aggregate analytics provider. Glassnode noted,

The total count of addresses holding a non-zero BTC balance has also pulled back by -2.8% from the recent all-time high of 38.7M addresses. A total of 1.1M addresses have spent all coins they held during this correction, again providing evidence that panic selling is currently underway.

In addition, the report showed that the on-chain aSOPR and STH-SOPR levels fell below 1.0 during the current slump. In particular, STH-SOPR measures the profit margin attained when coins held for 155 days or less swap hands on-chain.

Source: Glassnode
Source Glassnode

In this case, an STH-SOPR of less than 1.0 indicates that BTC holders for less than 155 days dumped their coins at a loss.

Notably, the recent bull run led to a rise in crypto holders. In fact, new coin holders peaked at 28%. In turn, new holders accounted for about 5.3 million BTC out of a total circulating supply of 19 million.

Analysts have attributed the current crypto dip to crypto enthusiast turned troll Elon Musk. Musk recently shared that Tesla would no longer accept BTC as a payment option. The decision was due to concerns regarding BTC’s excessive energy consumption.

The news, however, sparked panic among new holders. Crypto newbies have since been dumping their coins at a loss. The noobs fear that Tesla will liquidate its BTC holding, causing the crypto to fall further.

On the other hand, seasoned crypto investors have survived epic slumps like the 2018 slump and the more recent 2020 crash. As such, they are aware, as Jack Dorsey so eloquently put it, “no single person (or institution) will be able to change it (bitcoin) or stop it.”

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Avid reader and writer with a passion for sharing crypto news and trends. Uses her background in finance to help readers better understand the crypto market and investments. Hopes to see mainstream crypto adoption in the near future, especially in Africa.