The ruthless 40 percent crash that took place on March 12 forced many cryptocurrency investors to jump ship. According to CoinMetrics data, many of them were willing to do that at a loss.
It's not just whales
From ordinary investors struggling to buy basic goods to big institutions and whales -- there have been a lot of speculations about who was behind Bitcoin's third worst sell-off in history. However, once Bitcoin started its precipitous drop, some investors were willing to get out at any cost.
CoinMetrics noted that the spent output profit ratio (SOPR) dropped to its lowest level since 2012 on March 12. Even in December 2018, when Bitcoin plunged to its ultimate bottom of $3,100, fewer investors wanted to sell at a loss.
Fear grips the market
A measure of fear in the Bitcoin market plunged to nine, signaling 'extreme fear.'
While some might be tempted to use the famous Warren Buffett quote, the accelerating coronavirus pandemic continues to inflict a lot of pressure on global markets, which might indicate that the worst is yet to come.
The S&P 500, the benchmark stock market index in the U.S., is currently down nine percent with the CBOE Volatility Index surpassing 76.
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