BTC Price Drop and Holder Conviction Amid FTX Collapse

BTC Price Below $17,000

Bitcoin (BTC) experienced a significant downturn, with its price falling below the $17,000 mark. This decline comes amidst broader market turbulence, largely attributed to the FTX collapse. The repercussions of this collapse have sent shockwaves throughout the cryptocurrency sector, shrinking the global crypto market cap to under $900 billion, a level not seen since January 2021.

Analyzing BTC Holder Conviction

Glassnode, a prominent on-chain analytics firm, delved into several metrics to evaluate the impact of the FTX incident on BTC holder conviction. A key focus was the long-term holder supply metric, which revealed a decline since early November. Despite approximately 48,100 BTC being spent in the past week, Glassnode suggests that this figure alone does not indicate a widespread loss of confidence among holders.

Decline in Revived Supply

Another critical metric analyzed was BTC’s Revived Supply, which saw a decrease over the previous week. Around 97,450 BTC, which had been dormant for over a year, were spent and possibly reintroduced into circulation. This activity indicates a shift in the behavior of long-term holders, although not yet conclusively pointing to a broad loss of faith in BTC.

Increase in BTC Average Age Spent

Furthermore, the average age of BTC being spent surged to over 90 days in the last week, tripling the levels observed during September and October. This increase may suggest changing dynamics in BTC spending patterns, potentially highlighting shifts in market sentiment.

In conclusion, while the FTX collapse has undoubtedly influenced the BTC market, the current data does not yet confirm a definitive loss of conviction among long-term BTC holders. Continued monitoring of these metrics will be essential to understanding future trends in the cryptocurrency landscape.