Bitcoin (BTC) experienced a turbulent week, ending April 23 with a 9% drop to $27,600. This marks the largest single-week percentage loss for the leading cryptocurrency since early November. The primary factors contributing to the decline of BTC were rising bond yields and decrea...
Bitcoin (BTC) experienced a turbulent week, ending April 23 with a 9% drop to $27,600. This marks the largest single-week percentage loss for the leading cryptocurrency since early November.
The 10-year US Treasury note yield climbed six basis points (bps) to 3.58%, registering its second consecutive weekly increase. This surge diminished the appeal of risk assets, including cryptocurrencies.
Moreover, traders are pricing in a higher likelihood of the Federal Reserve continuing its tightening cycle with a 25 basis point rate hike in May.
Panic selling among Bitcoin traders
Glassnode typically classifies the BTC supply by age, labeling wallets holding coins for 155 days or more as “long-term holders” (LTHs). Those holding coins for shorter periods are designated as “short-term holders” (STHs), who often represent the more speculative segment of the Bitcoin investor base.
Since approximately April 16, the data reveals that STH coins – moving within the past 155 days– have been transferring to exchanges at lower prices than their previous transaction price.
The panic among cryptocurrencies holders extends to long-term holders (LTHs) as well, with LTH realized losses also increasing among those moving funds to exchanges.
Curious trading behavior
The firm noted that “with many traders FOMO’ing in Bitcoin above $30k and Ethereum above $2k this past week, loss transactions have mounted as markets pulled back.”
Santiment added, “Since Thursday, traders are moving coins below prices they obtained them at three times as often as above.”