{"id":188496,"date":"2021-04-27T20:00:39","date_gmt":"2021-04-27T19:00:39","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=188496"},"modified":"2021-04-27T12:45:18","modified_gmt":"2021-04-27T11:45:18","slug":"data-shows-old-bitcoin-holders-arent-selling-even-as-newcomers-get-hit-by-volatility","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/data-shows-old-bitcoin-holders-arent-selling-even-as-newcomers-get-hit-by-volatility\/","title":{"rendered":"Data shows old Bitcoin holders aren&#8217;t selling even as newcomers get hit by volatility"},"content":{"rendered":"<p><span data-preserver-spaces=\"true\">Last week saw global markets react to news of potential tax law amendments in the United States. As <a href=\"https:\/\/cryptoslate.com\/3-7-billion-liquidated-as-crypto-markets-react-to-bidens-tax-scare\/\"><em>CryptoSlate<\/em><\/a> reported, sources close to the current Biden administration said <\/span><span data-preserver-spaces=\"true\">policymakers were planning to increase taxes for wealthy investors to as much as 43.50% for gains above $1 million.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The news resulted in a sell-off that saw the flagship cryptocurrency\u2019s market value drop by 15.40%, shedding 8,570 points. Bitcoin went from trading at a high of $55,500 on April 22 to hit a low of $46,940 three days later.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The sudden downswing\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.bybt.com\/LiquidationData\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">generated<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0nearly $1.30 billion in liquidations worth of long BTC positions across the board.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Given the magnitude of the losses, the \u201c<a href=\"https:\/\/cryptoslate.com\/bitcoin-fear-and-greed-index-reaches-early-pandemic-levels-of-2020\/\">Crypto Fear and Greed Index<\/a>,\u201d a collective metric that measures current sentiments on the cryptocurrency market, swiftly\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/cryptoslate.com\/bitcoin-fear-and-greed-index-reaches-early-pandemic-levels-of-2020\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">swung<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0from \u201cExtreme Greed\u201d (79 points) to \u201cFear\u201d (27).<\/span><\/p>\n<figure id=\"attachment_188497\" aria-describedby=\"caption-attachment-188497\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-188497 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-27-at-12.20.07-PM-1024x465.png\" alt=\"Crypto Fear and Greed Index\" width=\"1024\" height=\"465\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-27-at-12.20.07-PM-1024x465.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-27-at-12.20.07-PM-300x136.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-27-at-12.20.07-PM-768x349.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-27-at-12.20.07-PM-1536x697.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-27-at-12.20.07-PM-2048x930.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-188497\" class=\"wp-caption-text\">Crypto Fear and Greed Index<\/figcaption><\/figure>\n<p><span data-preserver-spaces=\"true\">According to on-chain analytics firm <a href=\"https:\/\/cryptoslate.com\/companies\/glassnode\/\">Glassnode<\/a>, new Bitcoin holders have been the most fearful while older holders remain calm. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The number of BTC with less than a week old was quickly spent over the past few days, suggesting \u201cnewer market entrants were shaken out during this correction.\u201d Meanwhile, the number of coins older than six months did not see a significant increase in spending.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The on-chain data provider maintains that such behavior by market participants was seen in previous consolidation periods, which essentially led to higher highs.<\/span><\/p>\n<blockquote><p><span data-preserver-spaces=\"true\">\u201cPrevious instances of similar spending behavior was observed during the December 2020 consolidation, just before breaking to new ATHs, and during the first bull market correction in January,\u201d <a href=\"https:\/\/insights.glassnode.com\/the-week-on-chain-week-17-2021\/\">said<\/a> Glassnode.\u00a0<\/span><\/p><\/blockquote>\n<figure style=\"width: 2000px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/insights.glassnode.com\/content\/images\/2021\/04\/06_soab.png\" alt=\"Bitcoin Spent Output by Glassnode\" width=\"2000\" height=\"1124\" \/><figcaption class=\"wp-caption-text\">Bitcoin Spent Output by <a href=\"https:\/\/cryptoslate.com\/companies\/glassnode\/\">Glassnode<\/a><\/figcaption><\/figure>\n<h2><span data-preserver-spaces=\"true\">Bitcoin hits a brick wall<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Data from on-chain analytics firm <a href=\"https:\/\/cryptoslate.com\/companies\/intotheblock\/\">IntoTheBlock\u2019s<\/a> In\/Out of the Money Around Price (IOMAP) model shows that Bitcoin sits underneath a massive supply barrier. Roughly 3.90 million addresses had previously purchased more than 1.50 million BTC between $54,700 and $58,700.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">As such, further price appreciation may prove challenging.<\/span><\/p>\n<figure id=\"attachment_188498\" aria-describedby=\"caption-attachment-188498\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-188498 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-27-at-12.39.24-PM-1024x398.png\" alt=\"In\/Out of the Money Around Price by IntoTheBlock\" width=\"1024\" height=\"398\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-27-at-12.39.24-PM-1024x398.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-27-at-12.39.24-PM-300x116.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-27-at-12.39.24-PM-768x298.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-27-at-12.39.24-PM-1536x596.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-27-at-12.39.24-PM-2048x795.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-188498\" class=\"wp-caption-text\">In\/Out of the Money Around Price by <a href=\"https:\/\/cryptoslate.com\/companies\/intotheblock\/\">IntoTheBlock<\/a><\/figcaption><\/figure>\n<p><span data-preserver-spaces=\"true\">Only a decisive daily candlestick close above the $54,700-$58,700 resistance wall could allow Bitcoin to resume its uptrend and reach new all-time highs. But failing to break this hurdle might lead to a rejection back to $50,000.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last week saw global markets react to news of potential tax law amendments in the United States. As CryptoSlate reported, sources close to the current Biden administration said policymakers were planning to increase taxes for wealthy investors to as much as 43.50% for gains above $1 million. The news resulted in a sell-off that saw [&hellip;]<\/p>\n","protected":false},"author":148,"featured_media":188511,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,15323],"tags":[60786],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Data shows old Bitcoin holders aren&#039;t selling even as newcomers get hit by volatility<\/title>\n<meta name=\"description\" content=\"While new Bitcoin holders tremble with fear, the so-called \u201cstrong hands\u201d remain calm, waiting for the uptrend\u2019s resumption.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/data-shows-old-bitcoin-holders-arent-selling-even-as-newcomers-get-hit-by-volatility\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Data shows old Bitcoin holders aren&#039;t selling even as newcomers get hit by volatility\" \/>\n<meta property=\"og:description\" content=\"While new Bitcoin holders tremble with fear, the so-called \u201cstrong hands\u201d remain calm, waiting for the uptrend\u2019s resumption.\u00a0\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/data-shows-old-bitcoin-holders-arent-selling-even-as-newcomers-get-hit-by-volatility\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-27T19:00:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-04-27T11:45:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/bitcoin-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ali Martinez\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ali Martinez\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/data-shows-old-bitcoin-holders-arent-selling-even-as-newcomers-get-hit-by-volatility\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/data-shows-old-bitcoin-holders-arent-selling-even-as-newcomers-get-hit-by-volatility\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/#person\",\"name\":\"Ali Martinez\",\"url\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-300x300.jpg\",\"caption\":\"Ali Martinez\"},\"jobTitle\":\"Analyst\",\"description\":\"Ali came across Bitcoin\u2019s whitepaper in 2014. 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