The price of bitcoin is currently keeping above $5,000 while the trading volume remains around $2 billion after having one of the largest one-day price drops in bitcoin’s history amidst the growing concern over the Coronavirus (Covid-19) pandemic.

The network-wide indicator of profit/loss is at its lowest since February 2012. On March 12th, BTC SOPR dropped to 0.843, below 1 signal that investors are selling at a loss.

According to Coin Metrics, it was because short-term and relatively new holders sold their BTC during the recent price crash.

On tracking how many old coins came back into circulation after being untouched for a period of time, it was found that on March 11th, about 281 BTC that had been touched for at least 30 days were revived.

In comparison, only 4,131 BTC that had been untouched for at least a year were revived, signaling that a vast majority on March 11th and March 12th involved BTC that were held for less than a year.

March 11th was actually the “fourth-largest spike in BTC thirty day revived supply over the last eight years.”

While short-term holders panicked and sold their digital assets during the bloodbath, long-term holders were unfazed of the severed downturn. The one-year revived supply wasn't unusually large on March 11.

This was further emphasized by the coin value days destroyed, which multiplied transfer value by the amount of days that the coins transferred were last moved on-chain.

Giving old coins higher weight, this metric didn’t see any significant spike on March 11 or March 12, indicating that “there was not a relatively high amount of long-held coins moved prior to the recent price action.”

After such an intense and loss driven week, it is reassuring that HODLers are holding onto their BTC tight as most of the sell-off was driven by short-term holders.

Markets are still volatile, but bitcoin has now “entered a historically attractive price zone,” as MVRV goes below one which means holders have a higher market valuation than current speculators.

It has been only the fourth time in Bitcoin’s history that the market value of the crypto asset to realized value has dropped below.

On March 12th, it saw its largest one-day drop since December 2013, after the price fell by over 30%. In the past, where MVRV dropped below one has been the “best time to accumulate BTC at a relatively discounted price.”

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