On January 3, 2024, following the Matrixport report that emphasized the Security and Exchange Commission (SEC) would not approve any of the 14 submitted applications for the spot Bitcoin Exchange Traded Fund (ETF), the news spread rapidly and captured everyone’s attention, resulting in a significant liquidation of positions on exchanges.
HODLers unaffected by yesterday’s Crypto crash
This news not only created fear but also led to significant liquidation and heavy trading volume, ranging from $650 million to $60 billion, respectively. However, data from CryptoQuant highlights this massive price drop in Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and other major altcoins, didn’t affect the sentiments of HODLers, as they did not move their crypto assets.
In a rollercoaster ride for the cryptocurrency market on January 3rd, Bitcoin (BTC) faced substantial volatility following negative news about the BTC spot ETF. BTC, which had reached a high of $45,000, experienced a sharp drop to $40,000, currently stabilizing around $43,000.
According to CryptoQuant’s insights yesterday’s market turbulence prompted mixed reactions from short and long-term holders. While short-term investors exercised caution, adjusting positions to mitigate potential losses, certain long-term holders seized the opportunity to realize profits. Notably, those with a more extended investment horizon, spanning the 2019-2022 cycle, appeared resilient in the face of the recent market volatility.
Additionally, this insight is based on the SOAB (Spent Output Age Bands) USD indicator and represents a snapshot of investor behavior during the specified time frame.
Will Crypto assets gain momentum?
However, upon examining the current crypto landscape, it has been observed that digital assets like Bitcoin, Ethereum, Solana, XRP, and many other top crypto assets are once again indicating bullish strength.
Currently, Bitcoin is trading over $43,300, and in the last 24 hours, it experienced over 2.3% upside momentum. Solana is trading near $100, and in the last 24 hours, it experienced over 2% upside momentum. Similarly, XRP also surged more than 2.5% upside momentum. This price surge in crypto assets highlights yesterday’s massive fall as a short-term decline and occurred due to the confusing report by Matrixport.
