The latest on-chain data reveals the interesting exits of individual and larger investors and their behavior in terms of Bitcoin (BTC) holdings during the recent crash. IntoTheBlock data shows that around 40,000 BTC have entered the exchanges since May 1. While this adds to the selling pressure, there is some good news as Bitcoin actually managed to stay above $28,000, a very important sign.
40 thousand Bitcoin (BTC) deposited on crypto exchanges in a week
As you can follow from the news on Kriptokoin.com, Bitcoin, which could not go above $ 40,000 for weeks, reversed its trajectory in the middle of the Terra-LUNA-UST debacle last week and approached $ 25,300, which is the lowest price position since the end of December 2020, with a decrease of $ 15,000.
This sparked mass panic in the markets, with the Fear and Greed Index showing the most intense levels of “extreme fear” since the Covid-19 collapse. Naturally, many investors rushed to invest their holdings in stock markets, which are often seen as bearish.
According to data from IntoTheBlock, around 40,000 BTC was sent to trading platforms. The analytics platform argues that this coincides with the ‘downside selling pressure we are experiencing’. Despite this increasing selling pressure, the company announced that Bitcoin ‘managed to stay above $28,000’. Moreover, the cryptocurrency broke above $31,000 a few days ago but failed to continue upwards. IntoTheBlock shared the following on his Twitter account:
BTC DEPOSIT TO EXCHANGES HAVE INCREASED SIGNIFICANTLY SINCE 11 MAY. APPROXIMATELY 40,000 BTC DETECTED AS ENTRY TO EXCHANGES. THIS COMES WITH THE DOWN-SELLING PRESSURE WE EXPERIENCED. HOWEVER, BITCOIN MANAGED TO STAY OVER $28,000.
Individual investor buys bottoms in Bitcoin
In such extreme volatility situations where BTC loses more than 30% of its value in days, individual investors often flock to the scene. However, that doesn’t seem to be the case this time, according to IntoTheBlock data.
Addresses holding BTC for less than 30 days started to increase on May 8 and continued to increase. The company acknowledges that these assets often ‘follow price action and sell at a loss, but increase their balance from 1.47 million BTC to 1.78 million BTC in 7 days’:
INDIVIDUAL BUY THE BTC DROPS. BALANCE HOLD BY TRADERS – ADDRESSES KEEPING <30 DAYS, INCREASING SINCE 8 MAY. THESE ADDRESSES HISTORICALLY FOLLOW THE PRICE MOVEMENT AND SELL AT LOSS. BUT THEY INCREASED THEIR BALANCES FROM 1.47 MILLION BTC TO 1.78 MILLION BTC IN 7 DAYS.
It is worth noting that this time it was not just individuals who bought the drop. El Salvador, the first country to legalize BTC, added another 500 BTC to its holdings during the most recent withdrawal.