As the crypto market retraces, ‘paper hands’ or short-term holders have panic-sold over 54,000 Bitcoins, recent data shows.
According to data made available on 26 November from on-chain analytics platform CryptoQuant, a total of 54,600 Bitcoin were sold in the last 24 hours alone.
Market retrace causes panic
After several days of upward movement, the crypto market has experienced a sudden retrace, led by the largest digital currency by market cap, Bitcoin.
The top crypto asset which rose to a high of over $99,000 suddenly started to drop and is currently trading at $91,874, according to Coin Market Cap.
As a result of the retrace, several short-term holders who are mostly retailers have sold their Bitcoin to prevent any further losses. These are usually holders who bought Bitcoin to make a quick profit, and try to prevent any losses by selling.
The panic selling also shows that the holders are probably new to the crypto space, because retraces are usually healthy processes in bull markets like the one crypto is currently in.
Interestingly, long-term holders and whales are always ready to buy the Bitcoin that short-term holders sell. For example, Microstrategy is increasing its Bitcoin holding every time the price drops.
It reportedly bought 55,000 Bitcoin today, more than the total number of Bitcoin sold in the last 24 hours. Such whales consider every retrace as an opportunity to buy more Bitcoin.
When will it stop?
The Bitcoin pullback wasn’t expected but came as a surprise, and as long as it continues, more panic selling is expected to come.
However if the price regains strength soon, panic sellers may also FOMO back in to get a quick profit with the upward move.
The problem is that such an approach hardly yields any gains, as Bitcoin holders only gain over several months or years of holding.
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