Following the speculations that Tesla might sell off its Bitcoin holdings, nearly 1.1 million people have sold their BTC in panic. The price of Bitcoin has undoubtedly taken a hit in the last few days, bringing the price as low as $42,000. This brought about a state of panic, which caused the inexperienced Bitcoin investors to quickly sell off the digital asset. Meanwhile, the long-term hodlers of BTC were not affected by the news as they have seen drastic shifts in Bitcoin’s price over the years.
The price of BTC took a nosedive and fell below $42,000, which created a worrisome situation for all Bitcoin investors and traders. The unexpected situation caused all interested parties to question whether they should hold or let go of their Bitcoin investments. Considering the confidence of the long-term hodlers it is safe to say that the price of Bitcoin may resurface, which can be encouraging for potential investors and novice parties.
While many have sold their BTC holdings in panic, some people have decided to invest in the flagship cryptocurrency. If you are also looking to make use of BTC’s price and buy the digital asset then you can use SwissBorg or Kraken, which are popular cryptocurrency exchanges.
Why Are New BTC Investors and Traders Worried?
The world of cryptocurrency has always been known to be volatile and unpredictable. Sudden changes in the global financial market and several other factors cause the prices of digital currencies to rise or fall. The extreme changes and shifts in the crypto market can be stressful for people who do not have any prior experience in crypto trading or investing.
In the last few days, the price of Bitcoin fell below all expectations, which sent shockwaves across the cryptocurrency industry. The decrease in crypto asset’s price is a result of Tesla suspending its support for BTC payments and hinting that it will soon be selling all its BTC holdings.
These news updates pushed the price of Bitcoin far below $43,000, which was its lowest level in 20 weeks. The crash in BTC’s price worried the new investors who quickly exited from the crypto market while long-term hodlers did not sell anything.
According to on-chain analytics provider, Glassnode:
“A total of 1.1M addresses have spent all coins they held during this correction, again providing evidence that panic selling is currently underway.”
Approximately 5.3 million Bitcoin were held by the novice parties. Earlier this year, Bitcoin was reported to achieve a new all-time high above $63,000. Since then the digital asset has dropped 28%, which is the deepest correction in the crypto market.
Despite the shocking drop in BTC’s price, the long-term hodlers have stood their ground and have not sold any of their Bitcoin holdings, which can indicate a possible rise in Bitcoin price.
What to Know as a Potential BTC Investor or Trader?
The crypto market trends have been susceptible to sudden changes that are not always taken lightly by investors and traders. It is natural for people to worry about their funds if a substantial fluctuation is observed as has been for Bitcoin.
However, the extreme drop in Bitcoin price has not occurred for the first time, which is why the long-term BTC hodlers do not seem worried. This can be a positive indication for people planning to invest in crypto but worried due to the uncertainty of the crypto market. If the long-term hodlers have kept their BTC holdings then it can be expected that the price of the flagship cryptocurrency will soon rise again.
Considering the current price of Bitcoin, if you are interested in buying BTC then you can use exchanges such as SwissBorg exchange or Kraken. You can eventually move towards crypto trading, in which case one of the top exchanges to use is ByBit BTC. If you have a busy schedule you can also consider copy-trading and use PrimeXBT Covesting.