• News
  • Celebrities
  • Finance
  • Crypto
  • Travel
  • Entertainment
  • Health
  • Others

Panic Selling Crypto - Market Starting To See Even Old-Timers ‘Panic Selling’

This year, as the crypto market fell, short-term traders were among the first to sell their holdings and to panic selling crypto.

Now that losses are getting worse, even some of the most loyal investors look like they want to get out.

Glassnode data shows that a measure called the "spent output profit ratio," which shows how much money was made from trading digital currencies on a blockchain on any given day, has dropped to its lowest level in a year.

The disappearing gains could be a sign that long-term owners are under pressure. This could be a bad sign for a market known for its hodlers, who are loyal investors who would ride out any downturn no matter what.

Long term holder SOPR statistics
Long term holder SOPR statistics

The thought was not to worry, the long-term investors are holding strong.

In an interview, Noelle Acheson, who is the head of market insights at Genesis Global Trading, said.

Well, we’ve started to see the long-term holders sell as well. According to on-chain data, some of them seem to be panic selling, exiting at below cost.

Glassnode says that the spent output profit ratio gives an idea of how people feel and how profitable something is over a certain time period. It also shows how much all coins moved on the chain have gained.

It gives an average and doesn't mean that all long-term investors are selling or that everyone who is selling is losing money.

But it's another reason to worry about a market that's had a lot of setbacks and doesn't seem to have many things that could help it turn around.

Digital assets and other risky investments have been going down in value all year, as central banks around the world have started to raise interest rates to slow down inflation.

This year, Bitcoin is down about 50 percent, and Ether is down about 70 percent.

As of Friday, an index of the 100 biggest coins was down more than 60% this year.

The latest problems with cryptocurrencies have come from the lending market, where well-known companies like Celsius Network and Babel Finance have frozen withdrawals.

At the same time, a tweet from Three Arrows Capital, a large crypto hedge fund, made people worry that the company might be having money problems. This added to the feeling that things were getting worse.

I am so, so glad that that is being flushed out as we speak - that needed to break, that needed to be out of the system,

On Bloomberg's "What Goes Up" podcast, Anastasia Amoroso, chief investment strategist at iCapital, talked about how speculation is being squeezed out of the system.

Because crypto has such strong supporters, market watchers have been obsessed with figuring out who's getting hurt by the bear market and selling off their investments.

Short-term investors who bought Bitcoin in the past year and a half were put to the test early when the price dropped to its lowest level since 2020.

Then, this month, strategists at Glassnode said that the downturn had moved into its "deepest and darkest" phase, putting even long-term holders under pressure.

This year, the value of the crypto market as a whole has dropped by more than $1 trillion.

Some small coins have lost 90 percent of their value.

The most stunning feature of this bear market in crypto is its monotonic relentlessness - there is no sneaky underlying bull narrative to catch the market short.

Said Brent Donnelly, president of Spectra Markets.

What was once a massive flood of FOMO money trying to get in is now an equally raging torrent the other way.

Prepare For Pullbacks And Accept The Risks

The cryptocurrency market is known for being very unstable. The best way to deal with this is to accept it.

People have lost thousands of dollars on the market in just a few hours.

You need to be ready for that if you want to invest in the best-performing asset in history.

Even though the Bitcoin price has lost more than 85 percent of its value more than once, it has always gained that value back.

Even people who bought Bitcoin at $20,000 in 2017 saw their money more than double in value during the bull run of December 2020.

Be ready for the market to go down, but know that it will come back.

Pullbacks and dips in the market shouldn't hurt you if you're thinking about the long term and have used money that you don't need.

About The Authors

Adaline Fritz

Adaline Fritz - Adaline's upbeat, can-do attitude and nurturing disposition make her perfect for understanding each client's wants and needs and skillfully directing them toward their real estate objectives. Adaline has experience in all facets of the real estate process, having started in the administrative sector and progressed to operations before achieving success in real estate sales. She earned a Bachelor of Science degree in Psychology from San Diego State University and Western Oregon University, and returned to the Portland area in 2011 to pursue a career in real estate. She also loves traveling, working out, and spending time on the water during Portland's beautiful summers.

Recent Articles

  • Crypto Accessories Every Crypto Holder Should Know About

    Crypto Accessories Every Crypto Holder Should Know About

    These days, crypto accessories and gadgets can be found everywhere. There is a vast selection of products available for purchase, ranging from cryptocurrency wallets to devices that make buying and storing NFTs easier. If you enjoy cryptocurrencies and would like to own some, trade some, and play around with it, read on. These Bitcoin accessories will quickly become some of your favorite electronic gizmos.

  • MoviesCouch Hollywood Movies Download – Down, Down The Drain

    MoviesCouch Hollywood Movies Download – Down, Down The Drain

    It looks like one site will let down film lovers who used to frequent it for movies that they can download for free. If you’re looking for MoviesCouch Hollywood movies download, prepare to be disappointed.

  • Best Lotion For Jerking Off That Won't Damage Your Skin In 2022

    Best Lotion For Jerking Off That Won't Damage Your Skin In 2022

    Many people nowadays are looking for the best lotion for jerking off that will enhance their self-pleasure moments while not harming their skin.

  • Gerard Butler Net Worth - The Real Leonidas Of Sparta

    Gerard Butler Net Worth - The Real Leonidas Of Sparta

    The Scottish actor Gerard Butler net worth is $40 million. Gerard originally majored in law, but he gradually drifted toward acting and grew to be one of Hollywood's most known faces.

  • Keanu Reeves - $380 Mill Net Worth, Career, Earnings And Lifestyle In 2022

    Keanu Reeves - $380 Mill Net Worth, Career, Earnings And Lifestyle In 2022

    A musician, actor, producer, and philanthropist, Keanu Reeves net worth is $380 million. He has acted in scores of movies throughout the years, some of which have grossed billions of dollars at the box office. He is likely best known for the John Wick and The Matrix movie series.

  • MoviezAddiction.Website – Feeding People’s Craving For Films, TV Shows

    MoviezAddiction.Website – Feeding People’s Craving For Films, TV Shows

    Addicted to movies and TV shows? Not wanting to make you become more obsessed, but have you heard about MoviezAddiction.website, a source of thousands of films and shows you can download?

  • Can You Trust Rhino Air Hockey?

    Can You Trust Rhino Air Hockey?

    Work and family take up so much of our time these days that it's surprising how little time we have left for our enjoyment and fun. But just because we're adults doesn't mean we have to make our whole lives about work. You need to play Rhino Air Hockey Table to add joy to your life, relieve stress, and connect with other people and the world around you.

  • How Much Is A Mail Order Bride? Mail Order Bride Cost Estimated

    How Much Is A Mail Order Bride? Mail Order Bride Cost Estimated

    Interested in mail order bride pricing? Our estimations of mail order bride cost will help you on your quest for a foreign soulmate. Read this to learn more!

  • Head Of AmCham Guatemala Juan Pablo Carrasco De Groote: The “Art Of The Deal” (Guatemala-style)

    Head Of AmCham Guatemala Juan Pablo Carrasco De Groote: The “Art Of The Deal” (Guatemala-style)

    For over 10 years, the head of AmCham Guatemala has been Juan Pablo Carrasco de Groote – the unchanging face of the chamber of commerce.