Bitcoin Market Still Buoyant: Over 300,000 Sold in May
So far in the month of May, the price of bitcoin (BTC) has been under pressure from investors who purchased the cryptocurrency less than six months ago. That's due to the flood of sales they experienced. CryptoQuant, a data explorer, reports that more than 300,000 bitcoins bought during the last six months had been sold so far in May. Most of these trades came from those who bought Bitcoin between November and January of this year.
So far in the month of May, the price of bitcoin (BTC) has been under pressure from investors who purchased the cryptocurrency less than six months ago. That’s due to the flood of sales they experienced. CryptoQuant, a data explorer, reports that more than 300,000 bitcoins bought during the last six months had been sold so far in May. Most of these trades came from those who bought Bitcoin between November and January of this year.
People Are Trying to Cash Out Their Bitcoins
According to the same explorer, a total of 266,000 bitcoins were bought between November and January and 78,000 bitcoins bought between January and March were sold in May. The cryptocurrency’s dramatic price gain since they acquired it may have motivated them to cash out.
From November’s $16,000 to April’s $31,000, bitcoin’s price has more than tripled. Since then, the cryptocurrency’s highs have been steadily falling, maybe helped this month by the selling of these investors.
Bitcoin May Keep Falling
On the other hand, Bitcoin’s price keeps falling from its recent highs. Naturally it causes a lot of volatility in the markets.
Bitcoin reached a price of 27,200 USD today, marking one of the lowest points in the last two months. And, according to experts, it may continue to decline until it reaches its support level (its minimum) at USD 25,000, which was its resistance level (its maximum) at the start of the year.
Why Is This a Problem?
Some investors may decide to cash out their Bitcoins when the price rises. The need to hedge risks or make quick gains might be behind this behavior. Individuals may also be compelled to sell due to sudden liquidity shortages or other financial commitments. Selling during a price spike might mean missing out on more profits if the price keeps increasing. There may be fiscal repercussions, more market volatility and a dampening effect on investor confidence. Therefore before opting to sell bitcoins amid a price rise, it is necessary to carefully evaluate personal circumstances and market dynamics.
You may be interested in:
- The Best Budgeting Apps in the UK for 2023
- Carbon Coin Price Prediction 2023-2030
- Trading 212 Alternatives: Alternatives You Need to Know About
