87 Interactions, 2 Today
Bitcoin plummeted again after crossing the $52k milestone in four months, and is now hovering around $45k. The price drop during the week has been considerable, and this has caused some alarm among investors. However, not all investors are like this. In fact, some of them have taken it upon themselves to safeguard the market against more losses.
Who’s protecting Bitcoin?
Over the last couple of months, the accumulation trend has been strong across the market. While during the bull run many old coins were moved, at the moment, that does not seem to be the case.
Despite the latest price dip, these HODLed or lost coins just hit a 7-month high of 7.1 million BTC.
The aforementioned figure represents about 37.7% of the circulating supply.
Over the week, Bitcoin’s price has fallen by 15.03%, resulting in inventors facing losses that were visible on-chain. The supply in profit fell by 5% as realized losses hit a 45-day high of $411 million.
Unfortunately, HODLers are doing everything they can to reduce their losses as well as the market’s. Coins last transferred between 6 months and 10+ years, for example, have reached a one-year high, according to HODL Waves.
This means that HODLers have constantly held 72 percent of all circulating supply since September 2020.
What about short-term holders?
Actually, the majority of these losses were incurred and caused by short-term traders. They sold a lot of them right away. But. That is now changing, with buyers retaking control of the market.
Yesterday, spot volumes reached an all-time high of $9.25 billion. This indicates that there is a possibility of both purchasing and selling.
However, looking at the network statistics, it is evident that buying is returning to the market for short-term holders.
At the time of publication, the balance on exchanges was also at a three-year low of 2.47 million BTC.
Furthermore, nett positions have already been reduced by around 19k BTC worth $847 million in the last week. Even during press time. Buying outnumbered sell orders by nearly 11,000 BTC.
Given the market structure and declining prices, it would be prudent to acquire or HODL Bitcoin. Why? Because the market may soon witness a trend reversal and the price may rise again.