Crypto news: BTC sinks to $37,000 as short-term holders drive volatility
06:59, 22 February 2022
Bitcoin (BTC) was trading at $37,000 in European morning trade as cryptocurrency and traditional markets fell in response to intensified tensions in Ukraine after Russian President Vladimir Putin ordered tanks into Ukraine territory on Monday evening.
As BTC – sometimes touted as “safe haven” asset – was not immune to the jittery effects of geopolitical tensions on equities, most of its volatility is driven by short-term holders, according to on-chain analytics firm Glassnode.
Short-term traders are defined as those who hold the coin below 155 days and are statistically most likely to be panic-spending during any period of volatility, according to Glassnode analyst Checkmate. According to Glassnode counts, 54.5% of BTC supply is held by short-term of holders, and BTC4.7m ($177.2bn, €156bn, £130.58bn) is held at an unrealised loss.
“It’s a little bit bearish out there – when it comes to on-chain activity, the markets are little bit uncertain, not really sure how to deal with the current situation. We’re seeing that equilibrium of coins flowing in and out of exchanges, and short-term holders seem to be the most fearful cohort,” Checkmate said.
“With a total of BTC4.7m currently underwater, and 54.5% of it held by short-term holders who are statistically more likely to spend it, the bulls certainly have their work cut out for them,” he wrote.
So do new #crypto investors understand yet why more seasoned #crypto investors just get apathetic?
— Benjamin Cowen (@intocryptoverse) February 21, 2022
According to the Crypto Greed and Fear Index – a sentiment indicator that takes into account volatility, market momentum/volume shows, social media sentiment, dominance and trends in the cryptocurrency market – indicators pointed to ‘extreme fear’ in the market.
What is your sentiment on ETH/USD?
Quote of the day: ‘I was wrong – we need crypto’
Danish programmer, Ruby on Rails creator and former bitcoin sceptic David Heinemer Hansson has had a change of heart on “crypto’s fundamental necessity in Western democracies” in response to the current crackdown on protests in Canada.
Responding to the ongoing dispute with truckers leading protests at the US–UK border and in the Canadian capital, Ottawa, Prime Minister Gary Trudeau recently invoked the Emergencies Act for the first time since 1988.
To curb protest supporters’ donations for the truck drivers, the Canadian government broadened the country’s anti-money-laundering and counter-terrorism funding rules to include crowdfunding platforms and payment service providers that cover transactions including digital assets such as crypto.
This followed the protest suporters’ first pouring their donations through crowdfunding platforms such as the likes of GoFundMe and then by bitcoin.
Responding to these changes, Heinemer Hansson said in his blog, “To say I've been sceptical about bitcoin and the rest of the crypto universe would be an understatement of epic proportions.”
Top cryptocurrency coins by market capitalisation
As of 10:00 GMT:
- Bitcoin (BTC) fell 4.13% to $37,282;
- Ether (ETH) increased 4.24% to $2,578.27; and
- Binance coin (BNB) lost 4.43% and was trading at $365.00.
Winners and losers
- Among the biggest losers in the recent sell-off were the sandox (SAND), having lost 8.64% over the past 24 hours and 28.33% during the past week, and fantom (FTM), which is down by13.80% day-on-day and 24.13% week-on-week.
- There are no winners among major virtual tokens today.
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