BTC’s Volatile ETF Impact: HODLers Remain Unshaken Despite Market Swings

January 3rd marked a turbulent day in the cryptocurrency market as Bitcoin (BTC) experienced drastic fluctuations following the emergence of negative news regarding the BTC spot ETF. With BTC hitting a high of $45,000, the digital currency swiftly tumbled to $40,000 before settling around $43,000.

Investor reactions post this news and subsequent price changes were analyzed through the lens of the SOAB indicator (Spent Output Age Bands USD), shedding light on their actions and sentiments.

Short-Term Holders (STH) – 1D-6M Cohorts:

🟡 The 1W-1M cohort was noted to have spent nearly $1 billion. These investors, who entered the market between the $40,200 and $44,700 range, seemingly opted to exit around breakeven levels before potential losses exacerbated.

Source: CryptoQuant

🟢 Meanwhile, the 1M-3M cohort expended approximately $550 million. This group had initially bought in the $26,000 to $42,000 range and seemed to have realized profits, considering the market’s volatility.

🔵 Intriguingly, the movement within the 3M-6M cohort remained relatively subdued, suggesting a comparatively smaller reaction to the recent market upheaval.

Long-Term Holders (LTH) – 6M-5Y Cohorts:

Intriguingly, investors from the 6M-12M cohort, corresponding to those who entered the market in the first half of 2023, collectively sold $7.6 billion worth of BTC. This significant movement hints at profit-taking, likely spurred by concerns over a potential continued decline in the market.

Source: CryptoQuant

đź“Ś Notably, there appeared to be minimal activity within the 1Y~5Y cohort. Investors who weathered the storm of the 2019-2022 cycle seemed relatively unmoved by the day’s price action, exhibiting resilience despite the market’s roller-coaster movements.

The analysis of the SOAB indicator provides crucial insights into investor behavior and sentiment following the recent ETF-related news. While short-term holders displayed mixed reactions—some exiting to preserve capital, others realizing profits—long-term holders exhibited varied responses, with recent entrants opting for profit-taking while more seasoned investors maintained their steadfast positions.

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