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 Bitcoins (BTC) were deposited in crypto exchanges in a week
Kriptokoin.com As you can follow, Bitcoin that could not go above $ 40,000 for weeks , reversed its trajectory amid the Terra-LUNA-UST debacle last week, dropping $15,000 to one point approaching $25,300, its lowest price position since late December 2020.
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 downward 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 deposits on exchanges have increased significantly since May 11. Nearly 40,000 BTC was detected as an entry to exchanges. This coincides with the downward selling pressure we are experiencing. Despite this, Bitcoin managed to stay above $28,000.
$BTC deposit into exchanges has increased dramatically since May 11th.
Roughly 40,000 BTC has been spotted as inflows into exchanges. This coincides with the downwards sell pressure that we have been experiencing.
Despite this, #Bitcoin has been able to sustain above $28k. pic.twitter.com/d8fW5Y8UEc
— IntoTheBlock (@intotheblock) May 18, 2022
Individual investor Bitcoin’ also bought lows
In such extreme volatility situations where BTC loses more than 30% of its value in days, retail 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 increasing 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 buys BTC drop . Balance held by traders – Addresses holding <30 days, increasing since May 8th. These addresses historically follow price action and sell at a loss. However, they increased their balance from 1.47 million BTC to 1.78 million BTC in 7 days.
Retail has been buying the $BTC dip.
The balance held by traders – addresses holding <30 days, has been increasing since May 8th.
These addresses historically follow the price action and sell at a loss, but they increased their balance from 1.47m BTC to 1.78m BTC in 7 days. pic.twitter.com/qhluqo8QDj
— IntoTheBlock (@intotheblock) May 18, 2022
It’s worth noting that it’s not just individuals who bought the drop this time. El Salvador, the first country to legalize BTC, added another 500 BTC to its holdings during the most recent withdrawal.
