**Investor FOMO is Considered the Main Cause of Bitcoin's Plunge**
Analysts at the CryptoQuant platform Crazzyblock stated that short-term holders (STH) of Bitcoin (BTC) are the main reason for the decline in the price of the world's largest crypto asset.
According to them, these investors are taking profit actions. In addition, the portrait of Fear of Missing Out (FOMO) among market participants who are scared when prices drop is one of the factors causing short-term holders to flee.
"The conclusion is very clear, the recent decline was driven by STH profit-taking, not LTH (long-term holder) distribution, and sales driven by losses remain historically low," he said, quoting CryptoQuant.
However, Crazzyblock believes that this event has made the crypto market cleaner, as leverage pressure has decreased. Thus, it has made the composition of holders healthier.
As information, this analyst has been actively sharing his analyses on the CryptoQuant platform since 2023. He utilizes the data provided by the platform to strengthen his analysis.
