Here’s Why Bitcoin Crash to $80K is a Normal Correction Rather Than the Start of a Major Downtrend
The post Here’s Why Bitcoin Crash to $80K is a Normal Correction Rather Than the Start of a Major Downtrend appeared on BitcoinEthereumNews.com.
Data confirms that the latest Bitcoin crash is likely the result of a natural correction rather than the start of a major downtrend. Bitcoin has again dropped below $80,000 for the second time this year, triggering panic among investors. As fear spreads, many question whether this decline signals the end of Bitcoin’s bull run or if it is merely a natural correction within an ongoing uptrend. Decline in Peak Losses Shows Bitcoin in a Natural Correction In a recent analysis, Glassnode revealed that although Bitcoin revisited the low $80K range, the extent of realized losses remains significantly lower compared to previous corrections. Although $BTC revisited the low $80k range, loss realization at peak remained significantly lower than during the corrections from late Feb – early March. Aggregated peak losses:🔻 Feb 25: $933M🔻 Feb 26: $897M🔻 Feb 28: $933M🔻 Mar 4: $592M🔻 Mar 10: $377M pic.twitter.com/ryamAflG2z — glassnode (@glassnode) March 10, 2025 For instance, during the late February and early March downturns, aggregated peak losses ranged from $592 million to as high as $933 million. However, the latest pullback saw a peak loss of just $377 million, indicating a decline in panic selling. A major change in this correction is that losses are now spreading to investors who have held Bitcoin for 3 to 6 months. In late February, this cohort only realized losses of about $2 million, but this number has now surged to $9.5 million. Meanwhile, holders from the 6 to 12-month range are showing resilience, with negligible realized losses. Instead of panic selling, they are actively distributing at a profit. On March 10, this group took $26.4 million in profits, accounting for 44.4% of all profits across different investor categories, excluding short-term traders who held for less than 24 hours. Essentially, while short-term price action could remain choppy,…
Filed under: News - @ March 10, 2025 11:16 pm