Long-term holders of Bitcoin almost did not react to the recent correction of the premier cryptocurrency, but short-term traders succumbed to panic.
As you can see in the chart below, the adjusted spent output profit ratio (SOPR) for coins less than one week old rose on the back of the correction. This indicates that the coins spent last week suffered a loss compared to the prices when they were last moved.
At the same time, coins with a period of more than a year almost did not react to the Bitcoin correction. On the contrary, coins with a maturity of more than one month began to slow down. According to Glassnode, the average age of a coin spent dropped to 25-30 days last week. Thus, the market is pulling back towards the start of the bullish trend in 2020.
It is noteworthy that the decline has continued since mid-January. This suggests that long-term investors are confident that the trend will continue despite the volatility. The immobility of old coins often leads to downtrends in all related on-chain indicators, writes Glassnode.
This means that long-term investors do not spend their coins, and the correction mainly affected only new market participants.
The fact that long-term investors ignored the correction in Glassnode was announced earlier. For example, the index tracking the movement of old coins has remained relatively stable since mid-January. A rise in the index could signal that long-term investors are dumping their assets.
At the time of writing, the price of the BTC/USD pair was changing hands at $54,820.
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