According to data provided by CryptoQuant, short-term holders are currently in the process of capitulating. A whopping 62,500 BTC recently moved to exchanges at a loss.
Earlier today, the price of Bitcoin slipped below the $90,000 level for the first time since May, reaching an intraday low of $89,368.
Diamond hands?
Meanwhile, leading ETF analyst Eric Balchunas claims that BTC holders are more resilient than it might seem at first glance.
Balchunas is noting that exchange-traded funds (ETFs) are still receiving about $7 billion per day in inflows.
That means that even though markets are pulling back, investors are continuing to put money into ETFs.
He compares this pullback to past events like the “Tariff Tantrum” (a market scare during the U.S.–China trade war).
Back then, ETFs saw a record amount of inflows in Q1, meaning investors poured in money despite volatility.
So, in his view, the current pullback is very small in comparison to the massive flows recorded by these products.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team