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Bitcoin’s market has been on a downward trend recently, which has come as no surprise to long-term investors. While the digital asset hit an all-time high of $64,895 in April, it has declined by almost 54% as of press time. Short-term investors are currently suffering, but long-term investors are also struggling. In reality, Bitcoin has entered the negative region, with a year-to-date return of 1.36 percent to investors.
The cryptocurrency market’s decline, on the other hand, has highlighted two sides of the industry. Two scenarios exist: one in which consumers panicked and sold their digital assets, and another in which people are still holding on to them. When the FUD surrounding Bitcoin’s “ban” in China started making the rounds, the advent of panic sellers was unsurprising. For weeks, the selling pressure in China and Asia has only increased, particularly since Chinese officials shut down mining farms.
Recently, popular analyst Willy Woo shared a chart highlighting Binance inflows during BTC’s downtrend. According to the same, the inflows were mainly from Asia, especially during the time China was allegedly banning Bitcoin. Meanwhile, the “urgent selling” in Asia was followed by “urgent buying” in the West, as per Woo.
While the market just assumed that selling pressure was present, Woo believes that “every purchase has a seller.” This is especially true in the current market, he added, because BTC’s price is low, making it a suitable entry point for individuals looking to invest. When Bitcoin fell below $30,000, MicroStrategy purchased BTC for $489 million, or 13,005 BTC tokens. Following suit, its BTC holdings surpassed 100,000.
Furthermore, ARK Investment Management boosted its stake in Square, a payments services startup, after the company’s founder, Jack Dorsey, announced the creation of a “open developer platform.” Cathie Wood’s ARK investment followed up on this news with a purchase of a total of 225,937 shares. Although not a direct investment in crypto, ARK Investment has been a supporter of technology and it is ambitious to realize its exchange-traded fund [ETF].
Meanwhile, other big holders of crypto are Humpback whales and Dolphins holding over 100+ BTC. The Bitcoin Fish ratio would clarify the gap between the small and big holders.
The little fish accounted for 32% of the market’s huge fish. These holdings, however, did not include any exchange-traded funds or exchange-traded funds (ETFs).
The largest digital asset will continue to be bought and sold. With Chinese and other Asian holders “urgently selling,” predicting which side the coin will land on will be tough.