“Buy low and sell high” is arguably the first advice any beginner investor would receive. However, in the face of regulatory uncertainty and a tumbling crypto market, trying to predict the highs and lows of the market can be very difficult.
According to recent data provided by Glassnode, short-term Bitcoin holders may have miscalculated their entry, buying at the top and selling at a loss over the past two weeks as the crypto market crashed.
Glassnode’s STH-SOPR indicator has dropped below one, suggesting that investors sold their Bitcoin at a loss. The indicator takes into account spent outputs younger than 155 days. It is used to assess the behavior of short-term investors.
Bitcoin has been on the decline since May 10, falling from the $58k region to below $50k on news that Tesla was no longer going to accept the flagship currency as payment for its cars. The crash continued until May 19, when Bitcoin nearly dropped below $30k.
Bitcoin reclaimed the $40k benchmark but quickly dropped lower. As of press time, the digital asset was making another attempt at $40,000. It is currently exchanging hands at $37,900, as per data provided by CoinMarketCap.