1.1 Million Bitcoin Wallet Addresses Wiped Out in Plunge

The total number of addresses holding BTC balances has also fallen 2.8 percent from a recent all-time high of 38.7 million addresses, according to glassnode data.

The poorest of the poor in this wave of bitcoin declines is the crop of leeks who ran in and jumped out of the market. According to glassnode data, the total number of addresses holding BTC balances has also fallen 2.8 percent from a recent all-time high of 38.7 million addresses. A total of 1.1 million wallet addresses were cleared of bitcoin in the plunge, the strongest evidence of the panic sell-off.

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Bitcoin (BTC) price plunged more than 10% on Monday, May 17, sliding down to the $42,500 level. It then began to swing around $44,000 and as of this writing, there is still strong resistance above $43,000. Bitcoin is trading at $43,257.75, down 0.54% on the day, with a market cap of $80.8 billion, according to BitTrade data. However, one clear trend that can already be observed in the panic sell-off in Bitcoin and the cryptocurrency space as a whole is that a large number of short-term holders are taking losses and leaving the market, however, long-term Bitcoin holders and miners are still continuing to bottom.

As Warren Buffett puts it, money in the market is “moving from the impatient to the patient.” Monday’s plunge in bitcoin prices was triggered by panic over Tesla CEO Musk’s Twitter tirade. With Tesla abandoning its Bitcoin payment channel last week, Bitcoin has been under unprecedented selling pressure.

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A SOPR below 1 indicates that short-term holders are in a panic selling mode, which is causing them to take significant losses on their investments. In summary, long-term holders continue to accumulate during these price declines. As Glassnode data shows, the number of addresses accumulating bitcoin spiked during the price crash.

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Likewise, the number of wallet addresses that have recently suffered losses has hit a nine-month high.

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However, market analyst Rich Ross noted in an interview with Bloomberg that BTC prices have not yet reached a bottom and further price plunges are expected in the future. A valid support level has formed around the 200-day moving average, or $40,000. Michael Purves, CEO of Tallbacken Capital Advisors LLC, on the other hand, said that “the momentum has now shifted fairly decisively to the bears.” Purves further added that $42,000 is a key support for bitcoin. If it doesn’t stay above it, Bitcoin will see a new wave of declines.

Mike Novogratz, a Wall Street veteran and founder of Galaxy Digital, told CNBC on Tuesday that he is bullish on bitcoin for the long term: “The market is not going to be that easy, and if it was that easy, we’d all be rich. Bitcoin is still up more than 50 percent so far this year, and this is just a normal pullback, a natural occurrence in the market.” Novogratz also said he would add to his bitcoin position around $40,000.

On the exchange side, Coin On received a total net inflow of about 26,000 BTC on Monday, while Coinbase registered a net outflow of 146 BTC. The two exchanges have seen different trends in net flows in recent weeks. Since April 19, Coinbase has seen its balance of holdings decrease by 34,408 BTC. but in those four weeks, the number of bitcoins held on Coin On has increased by 95,397. the size of net bitcoin flows on Coin On has picked up sharply in recent months, a sign of “macro sentiment swings among Binance users”.

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Glassnode analysts said, “This further suggests that the recent inflows may be driven by new market entrants (panic sellers) or may be due to capital shifting to other cryptocurrency assets,” for example, some investors may be moving bitcoin to Coinan to snap up other cryptocurrencies.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/1-1-million-bitcoin-wallet-addresses-wiped-out-in-plunge/
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