While analysts are still trying to wrap their heads around the third biggest sell-off in Bitcoin's entire history, crypto research firm CoinMetrics has determined that short-time holders were actually responsible for this.
In its most recent 'State of the Network' report, CoinMetrics noted that long-term hodlers remained on the sidelines of the recent carnage. The 38 price rout was driven by those coins that were held less than twelve months.
This explains why BTC's one-year revived supply didn't see a major spike in March.
As reported by U.Today, these short-term holders were also selling their coins at a loss.
Bitcoin becomes undervalued
Another important tidbit that can be found in the report is that Bitcoin's market value to realized value (MVRV) slipped below 1.0. On March 12, MVRV witnessed its biggest drop since 2013.
Speculators no longer value Bitcoin more than holders, and this could be a reliable sign that the flagship cryptocurrency is close to bottoming out.
MVRV falling to -0.50 in December 2018 coincided with the end of the 85 percent rout.
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