Small Traders Sell Out, Signaling Potential Market Bottom

Short-term traders are driving the majority of selling pressure in the market, not long-term investors. Recent data shows massive losses from short-term holders, reminiscent of 2022’s crash. This pattern suggests that small wallet owners may be selling near market bottoms rather than at the beginning of downturns. Blockchain analyses reveal a shift in ownership towards longer-term investors who are often instrumental in market recoveries. While large price drops are certainly concerning, what is more significant is the composition of the sellers.