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The past two years have been very eventful for the crypto space. The industry witnessed astronomical crypto adoption, with Bitcoin (BTC) trading at an all-time high of over $69,000.

However, despite this remarkable growth, the industry has witnessed some adverse events that have shaken investor confidence.

Using Glassnode’s Revived Supply data, CryptoSlate can measure the events that led to a significant selloff of a leading digital asset among long-term holders.

Revived Supply is the total number of coins that have returned to circulation after being untouched for at least one year. In other words, it is the total transfer volume of coins that were previously dormant for more than a year.

Long-term holders are classified as Bitcoin holders who have held onto the coin for at least six months.

Key sales events

Looking at events over the past two years, long-term holders have sold off significantly on four separate occasions in seven days. The four events are:

  • China Bitcoin Mining Ban 2021
  • The start of the 2021 bullfight
  • Russian invasion of Ukraine in 2022
  • FTX collapse in 2022
Bitcoin Revived Supply:
Source: Glassnode

According to the chart above, the highest sales occurred after Russia invaded Ukraine. During this period, long-term holders sold 410,000 BTC.

Other massive sell-off events occurred during the 2021 bull run, when long-term holders sold 375,000 BTC, and during China’s Bitcoin mining ban, when they sold 367,000 BTC.

The fourth highest selling event since the Covid pandemic came after the collapse of FTX in November. According to the chart, BTC’s restored supply totaled 280,000 coins that week – Chainalysis reports that realized losses reached $9 billion, the fourth highest figure of 2022.

Fear forced owners to sell

Aside from the sell-off at the start of the 2021 bull run, when investors took profits, the revived supply of BTC generally peaked at a time of fear for investors. This was when real-life events caused panic among holdings, causing them to unload Bitcoin.

Peak fear occurs when Bitcoin that has been dormant for five years or more is sold. These coins are considered ancient coins and owners should be seriously afraid to lose their conviction and sell.

Russia’s invasion of Ukraine appears to have had this effect on investors. Other events triggered the selloff, such as the first bull run, the second bull run on November 21, and the May 2022 Lunar collapse.

Bitcoin ancient supply
Source: Glassnode

In conclusion, long-term holders who sold in 2021 profited while those who sold in 2022 on fear.

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