The bitcoin (BTC) price seems to be struggling to get back above USD 20,000. That would not have been the scenario that people who first bought BTC between 6 and 18 months ago. According to new research, this group of investors has been hit hardest by the bear market.
New investors sold at a loss
According to data from analytics platform CryptoQuant a large part of these ‘recent’ BTC investors have already sold their coins. This is evident from the Exchange Inflow Spent Output Bands (SOAB) from bitcoin. This data clearly shows that most of these investors have recently sold their BTC on a large scale for less than what they bought the coins for. According to CryptoQuant, sometimes with more than 50% loss.
“These coins were purchased between April 2021 and April 2022 at prices above $30K. This signal means that many holders who entered during the 2021 bull market and above $30K have recently capitulated and exited the market with a loss of about 50%.”
Especially recently, it has been seen that new investors were selling in large numbers. Perhaps this had something to do with the fact that the BTC rate slipped back below $20,000, which was obviously an important psychological barrier. In any case, CryptoQuant speaks of a capitulation
Has the bottom been reached?
The analysis of CryptoQuant also indicates that such an event can often mean a bottom, as this Premium analysis also showed. This may have already been achieved, but may also be formed in the near future, according to CryptoQuant.
“These types of capitulations usually occur in the final months of a bear market, indicating potential bottoming in the near future.”
In addition, it is stated that this might be an excellent time to buy. If past bear markets can be any indication of the future, there is a chance that we have indeed seen, or will soon see, the bottom. Who knows, there may finally be light at the end of the tunnel.