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Following the emergence of news that could potentially lead to the SEC’s rejection of Spot Bitcoin ETFs, causing recent sell-offs, Bitcoin’s long-term investors appeared to be unaffected by this situation. A leading cryptocurrency investor and one of the prominent writers of CryptoQuant, Yonsei Dent, provided insights into how both short-term and long-term investors positioned themselves following the news related to the ETF, offering a different perspective on market dynamics.
Bitcoin Commentary
Renowned cryptocurrency investor Yonsei Dent analyzed the significant market volatility in the BTC market that followed the negative news about the spot Bitcoin ETF on January 3. Despite the price dropping from $45,000 to $41,500, at the time of writing, the BTC price has almost returned to the $44,000 level.
Meanwhile, an analysis shared by CryptoQuant on the X platform shed light on investor behavior using SOAB (Spent Output Age Bands) and USD indicators.
The analysis revealed that short-term investors (STH), particularly those who invested between 1 day and 6 months, spent around 1 billion dollars, with exits occurring near the break-even point.
On the other hand, the group representing 1 to 3 months, who bought BTC between $26,000 and $42,000, made profits amid the price fluctuation, earning approximately 550 million dollars. However, the group with investments between 3M to 6M dollars showed minimal movement.
Surprisingly, the analysis indicated that long-term investors (LTH) with BTC holdings in the 6M-12M dollar range were bearish, as they sold off 7.6 billion dollars worth of Bitcoin. Nonetheless, very little reaction was seen in the group representing 1 to 5 years, and there was an apparent waiting period among investors who had endured the 2019-2022 cycle.
How Much is Bitcoin?
The crypto market faced heavy selling following the news that dropped into the market on January 3, while everyone was awaiting a response regarding the ETF. Meanwhile, the decline was not limited to a few cryptocurrencies, and almost all high-volume cryptocurrencies experienced a downturn with the market’s declining momentum yesterday.
On the other hand, predictions made by Matrixport regarding the price of Bitcoin and the anticipation that the SEC could potentially reject Spot Bitcoin ETFs caused price fluctuations.
Matrixport’s prediction was that all Spot Bitcoin ETF applications would be rejected in January. Following this, it was also indicated that the BTC price could experience a sharp drop to as low as $36,000.
After all these fluctuations, the Bitcoin price rose to $44,000 and then increased further, trading at $44,250 at the time of writing.
Considering that fluctuations in the BTC price may continue before the critical day of Friday, investors are advised to closely follow the market.
