New Bitcoin (BTC) investors who jumped in post-ETF launch are selling off as the largest cryptocurrency's sideways price action is driving them out of the market. On Thursday, Bitcoin's price dipped back to $58,000, and on-chain data revealed that much of the recent selloff stemmed from investors who entered the market this year.

CryptoQuant noted that approximately $2.4 billion worth of Bitcoin, aged between three and six months, moved on the network during the price drop. This significant spike in activity showed that coins recently moved between wallets are more likely to be sold amid price volatility than those held for longer periods.

Many of these investors likely bought into the hype surrounding the Bitcoin spot ETFs that launched in January. After initial net inflows of over $13 billion in the first two months, the performance of these funds, and Bitcoin's price, has since remained flat.

Entities holding Bitcoin for over a year have not shown signs of heavy selling, indicating they are more resilient during the downturn. According to LookIntoBitcoin, the short-term holder realized price for Bitcoin is currently around $64,614, about 10% higher than the current market price.

Crypto analytics firm Glassnode reported that Bitcoin's sell pressure has significantly decreased compared to two months ago, with more long-term holders retaining their BTC. James Check, a lead analyst at Glassnode, highlighted an "epic cooldown" in Bitcoin's "Value Days Destroyed (VDD) Multiple," indicating a return to accumulation mode. This metric compares near-term Bitcoin spending behavior to its yearly average, focusing on coins held for longer periods.