Long-term holders of bitcoin almost did not react to the correction of bitcoin, and short-term traders succumbed to panic
Newcomers to the cryptocurrency market succumbed to panic during the latest bitcoin correction. This is evidenced by the on-chain data published by Glassnode.
As you can see in the chart below, the adjusted spent output profit (SOPR) ratio for coins younger than one week has increased against the background of the correction. This indicates that the coins spent last week suffered a loss compared to the prices when they were last moved.
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At the same time, coins with a maturity of more than a year almost did not react to the drawdown of bitcoin. On the contrary, coins with a maturity of more than one month began to slow down the movement. According to Glassnode, the average age of the coin spent last week dropped to 25-30 days. Thus, the market rolls back to the time of the beginning of the bullish trend in 2020.
It is noteworthy that the decline has been maintained 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, Glassnode writes.
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 stated earlier. For example, the index that tracks the movement of old coins has remained relatively stable since mid-January. The rise in the index may signal that long-term investors are getting rid of their assets.
The price of bitcoin in the BTC/USDT pair at the time of writing is $54,721.
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