In a new video on the social media platform X, Glassnode’s lead analyst, Checkmatey, talks about a metric that shows how much the price of Bitcoin has dropped during the recent market correction.
Checkmatey says that Bitcoin’s recent drops in value haven’t been as big as before when the price went up a lot.
The analyst who studies the data recorded on the blockchain says that the people who own Bitcoin right now are very committed and not willing to sell their coins, even after the exchange-traded funds (ETFs) were approved. Many people thought that the approval of ETFs would cause people to sell their Bitcoin, but that did not happen.
The analyst says,
This has been my favorite for almost a year because it has the best price. We compare each cycle to the lowest price. What is the biggest drop from the highest point in a cycle.
In the past, we have seen regular drops of 25%, 30%, 60%, and 50% in uptrends.
Clearly, the 60% and 50% changes you mentioned are from March 2020 and similar events. However, you can see that even when things are going up, we still have big drops.
And we simply haven’t had that. Even after the ETF phase, where things got a bit overhyped, we only saw a 20% drop. So basically, it means that there are people who want to buy the coins, but there are also other people who don’t want to sell their coins.
At time of writing, the price of Bitcoin is $42,103.