Glassnode Reveals the Real Reason Behind Bitcoin's Drop, Warning Investors About This Level

While Bitcoin has been trending downwards in recent weeks, wiping out billions of dollars from the market, Glassnode has explained the real reason behind this decline. In its latest analysis, the cryptocurrency on-chain analysis platform Glassnode believes that the price of Bitcoin is facing continuous selling pressure from short-term investors. He said these investors bought BTC at the peak of $109,000, but started panic selling after the price dropped slightly. Glassnode says that the downward trend of BTC and altcoins is even deeper due to the selling pressure from short-term investors, and if the selling pressure continues, it may decrease further. Glassnode also noted a significant disparity between the average purchase price of these investors and the current market value of Bitcoin. According to the data, the average purchase price of investors in October was $62,000, while that price has now risen to $91,362. With Bitcoin trading at $81,9400, these investors are facing an unrealized loss of about 10.6%. Specifically, Glassnode analysts further noted that selling pressure from panicked market conditions has caused the SOPR (on-chain data metric measuring whether short-term holders are selling their assets at a profit or loss) to drop below 1. "SOPR dropping below 1 is a sign that short-term investors are cutting losses as they cannot overcome their own fear. If the selling pressure continues, Bitcoin could drop to as low as 70,000 dollars.