October Crypto Crash Shows Stark Contrast to 2021 Selloffs, Analyst Finds
Recent crypto crash behavior differs from 2021 selloffs, suggesting retail conviction is strengthening despite volatility.Summary
An analysis following the recent crypto flash crash indicates a fundamental difference in market structure compared to previous downturns in 2020 and 2021. A key divergence is that centralized exchange (CEX) balances are near all-time lows, contrasting sharply with 2021 when panic selling drove balances up. This low inventory suggests limited potential for a sustained deep decline.
Furthermore, Long-Term Holder SOPR remains near neutral, indicating that established investors are engaging in prudent profit-taking rather than fear-based capitulation selling. Data from Glassnode reinforces this, showing that smaller Bitcoin holders (1 to 1,000 BTC cohorts) are now stepping up accumulation, while large whale distribution is slowing. Analysts conclude that the current market structure suggests the downturn is not the end of the bull run but a sign of renewed retail investor conviction.
(Source：BeInCrypto)