• The article discusses how Bitcoin holders responded to the SVB collapse in March and how the 30k support affected strategies.
• It explores both long-term and short-term tactics as well as the surprising shift in loss-taking behavior when Bitcoin lost its 30k support.
• The article also highlights the massive amount of Bitcoin sold off in just one week.
Bitcoin’s 30k Plunge
The recent SVB collapse in March caused a major disruption for Bitcoin holders, causing them to rethink their strategies. Short-term and long-term tactics had to be adjusted, with some profiting from the market volatility while others faced losses.
Long-Term Holders Unfazed
Long-term holders managed to stay afloat and even profit from the situation as they held onto their Bitcoins. This was due to their confidence that prices would eventually recover and reach a new high.
Short-Term Sell Off
On the other hand, short term traders were more cautious and opted to sell off their Bitcoins before prices could drop any further. This resulted in an unprecedented amount of Bitcoin being sold off within one week following the plummeting of BTC below its 30k support level.
Central Banks’ Dilemma
The Federal Reserve’s balance sheet declined for four consecutive weeks following this event, leading many central banks around the world into a dilemma when it comes to inflation and cryptocurrency response in today’s economy.
20K BTC Reenters Exchanges
A large portion of these Bitcoins reentered exchanges after April 19th when it experienced its largest long liquidation event this year, once again highlighting how quickly markets can change where investors must be prepared for anything that may come their way.