Onchain Data Suggests Bitcoin Sell-Off Fueled by New Investors

While the covid-19 outbreak has caused economic calamity, cryptocurrencies have regained some of the losses that devastated digital currency markets on March 12. A recent report published by the researchers at Coin Metrics notes the “crypto asset sell-off was driven by short-term holders.” Further, an analyst at Unchained Capital agreed with Coin Metrics’ findings and wrote that “a majority of the volatility came from UTXOs 6 months old or younger.”

Also read: The 35 Most Influential Bitcoiners Dominating Crypto Twitter by Follower Count

Coin Metrics’ State of the Network Research Claims Short-Term Holders Fueled the Crypto Asset Sell-Off

The events of March 12 left people wondering why BTC and many other cryptocurrencies lost considerable value. Of course, most individuals understood that the panic selling stemmed from the fears surrounding the covid-19 outbreak that ravaged global markets. Furthermore, speculators have assumed that the