Research: Russia’s Ukraine invasion led to Bitcoin’s highest sell-off in the past 2 years

The past 2 years person been precise eventful for the crypto space. The manufacture witnessed astronomic crypto adoption, and Bitcoin (BTC) traded astatine an all-time precocious of implicit $69,000.

However, contempt this singular growth, the manufacture has witnessed immoderate adverse events that person shaken investors’ confidence.

Using Glassnode’s Revived Supply data, CryptoSlate tin measurement the events that person led to important sell-offs for the flagship integer plus among semipermanent holders.

Revived Supply is the full magnitude of coins that returned into circulation aft being untouched for astatine slightest 1 year. In different words, it is the full transportation measurement of coins that were antecedently dormant for implicit a year.

Long-term holders are classified arsenic Bitcoin holders that person held onto the coin for astatine slightest six months.

The large sell-off events

Looking astatine events of the past 2 years, semipermanent holders sold importantly implicit a 7 days play connected 4 antithetic occasions. The 4 events are:

• China’s Bitcoin mining prohibition successful 2021
• The commencement of the 2021 bull run
• Russia’s Ukraine penetration successful 2022
• FTX illness successful 2022

Source: Glassnode

According to the supra chart, the highest sell-off occurred aft Russia invaded Ukraine. During this period, semipermanent holders sold disconnected 410,000 BTC.

Other monolithic sell-off events happened during the 2021 bull tally erstwhile semipermanent holders sold 375,000 BTC and during China’s ban connected bitcoin mining erstwhile they sold 367,000 BTC.

The fourth-highest sell-off lawsuit since the COVID pandemic was aft the FTX illness successful November. According to the chart, BTC’s revived proviso during that week was 280,000 coins–Chainalysis reported that realized losses touched $9 billion, the 4th highest of 2022.

Fear made holders sell

Besides the sell-off astatine the commencement of the 2021 bull tally erstwhile investors took profits, BTC’s revived proviso mostly peaked astatine a infinitesimal of fearfulness for investors. This was erstwhile real-life events caused panic among holding, forcing them to offload Bitcoin.

Peak fearfulness happens erstwhile Bitcoin, which has been dormant for 5 years oregon more, gets sold. These coins are considered past coins, and holders indispensable beryllium earnestly spooked to suffer their condemnation and sell.

Russia’s invasion of Ukraine appears to person had this effect connected investors. Other events triggered sell-offs, specified arsenic the archetypal bull run, the 2nd bull tally connected November 21, and Luna’s collapse successful May 2022.

Source: Glassnode

In conclusion, semipermanent holders who sold successful 2021 did for profit, portion those who sold successful 2022 did due to the fact that of fear.