1.1 million Bitcoin wallet addresses wiped out in the crash

In this wave of Bitcoin decline, the most pitiful ones are the leeks who rushed in and then jumped out of the market. According to glassnode data, the total number of addresses holding BTC balances has also fallen by 2.8% from the recent historical high of 38.7 million addresses. A total of 1.1 million wallet addresses had their Bitcoins cleared in the plunge, which became the most powerful evidence of this wave of panic selling.

On Monday, May 17, the price of Bitcoin (BTC) plunged by more than 10%, sliding to the $42,500 level. It then began to fluctuate around $44,000, and as of press time, there is still strong resistance above $43,000. According to Bitpush data, the price of Bitcoin is $43,257.75, down 0.54% on the day, with a market value of $808 billion. However, in the panic selling of Bitcoin and the entire cryptocurrency field, a clear trend has been observed, that is, a large number of short-term holders are suffering losses and leaving the market, while long-term Bitcoin holders and miners are still continuing to buy at the bottom.

As Buffett said, funds in the market are "moving from the impatient to the patient." The price of Bitcoin plummeted on Monday because of the panic caused by Tesla CEO Musk's Twitter offensive. As Tesla abandoned the Bitcoin payment channel last week, Bitcoin began to suffer unprecedented selling pressure.

A SOPR below 1 suggests that short-term holders are in a state of panic selling, exposing themselves to significant losses on their investments. To summarize, long-term holders continue to accumulate during these price dips. As Glassnode data shows, the number of addresses accumulating Bitcoin surged during the price crash.

Similarly, the number of wallet addresses that have suffered losses recently has hit a 9-month high.

However, market analyst Rich Ross pointed out in an interview with Bloomberg that BTC prices have not yet reached the bottom, and further price plunges are expected in the future. An effective support level is formed near the 200-day moving average, which is $40,000. Michael Purves, CEO of Tallbacken Capital Advisors LLC, said that "the momentum has now turned quite decisively to the bear market." Purves further added that $42,000 is a key support for Bitcoin. If it cannot stay above it, Bitcoin will usher in a new wave of decline.

Mike Novogratz, a veteran Wall Street figure and founder of Galaxy Digital, told CNBC on Tuesday that he is bullish on Bitcoin in the long term: "The market is not that simple. If it were that simple, we would all be rich. Bitcoin is still up more than 50% so far this year. This is just a normal correction, a natural phenomenon in the market." Novogratz also said that he would increase his Bitcoin holdings at around $40,000.

On the exchange side, Binance received a total net inflow of about 26,000 BTC on Monday, while Coinbase registered a net outflow of 146 BTC. The net flows of the two exchanges have shown different trends in recent weeks. Since April 19, the balance held by Coinbase has decreased by 34,408 BTC. But the number of Bitcoins held on Binance increased by 95,397 in these four weeks. The size of Bitcoin net flows on Binance has rebounded sharply in recent months, which is a sign of "fluctuating macro sentiment among Binance users."

Glassnode analysts said, "This further suggests that recent inflows may be driven by new market entrants (panic sellers) or may be due to a shift in capital to other crypto assets," for example, some investors may be moving Bitcoin to Binance to snap up other cryptocurrencies.