- Long-term crypto holders are moving their coins.
- Recent happenings can indicate an increase in selling pressure.
- The collapse of FTX is to blame for the current turmoil.
In the past few days, long-term cryptocurrency holders have been seen moving their coins. The movement is alleged to be for the purpose of possible selling. The coin stashes weakening resolution comes amid fears that the implosion of crypto exchange FTX will prolong the crypto winter.
According to coin statistics firm, Cryptoquant, the market has seen an increase in CDD and Fund Flow Ratio. Notably, high levels of Fund Flow Ratio indicate investors are actively using the exchanges. On the other hand, high levels of CDD indicate that more long-term holders moved their coins for the purpose of selling.
According to the firm, these recent happenings can indicate an increase in selling pressure on one hand. Conversely, it can reveal Bitcoin purchases by the whales and hence a movement close to the bottom of the market.
“There has certainly been a degree of immediate panic within the HODLer cohort,” analytics firm Glassnode said in a weekly report published Monday. This refers to the migration of inactive coins and the decrease in supply held by long-term holders.
For instance, since Nov. 6, the total circulating supply owned by long-term holders has decreased by 61,500 BTC ($1.03 billion). This indicates a departure from the buildup seen between the end of June and the beginning of November, according to data made public by Glassnode.
Thus, the collapse of FTX will have a number of effects, including the “possible political demonization of the crypto industry and a daisy chain of balance sheet capital shortfalls for multiple institutions,” according to digital assets analytics company Amberdata. Some chart pattern specialists also predict that bitcoin will soon plummet to $13,000.
