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Until last month, Bitcoin had been providing high returns to its investors, but corrections in May brought this indicator down. BTC investors have received a 26 percent year-to-date return based on the current pricing. As BTC traded at $35,934, it was attempting to find a solid ground for the price, but fear of another decline was widespread in the market.
According to Alternative.me, the Bitcoin market has been in a state of anxiety for the majority of May. The prior month, when the price was above $50,000, it suggested greed.
Despite the fact that the price was in a fluctuating period, market indications showed that the fundamentals were good. Bitcoin fundamentals indicated that long-term hodlers have remained committed to the digital currency despite the volatility. Over the last year, the number of holders has increased in a linear fashion. According to IntoTheBlock statistics, there were around 22.01 million addresses at the time, which was an all-time high for Hodler’s indicator statistic. This high value accounted for 57.43 percent of all BTC holders.
As the number of long-term investors increased, so did the number of BTC holders.
The total number of addresses with a balance also hit a new peak of 38.92 million on 29 April. As the price crashed after 18 May the number of addresses with a balance surged from 38.08 million to 38.37 million. This was a sign that people were indeed buying the dip.
While new investors were expected to panic-sell, long-term hodlers who were used to volatility may panic less, and wait out the consolidation phase the digital asset was going through.
According to statistics, the In/Out of the Money Around Price indication indicated that a huge cluster of addresses and volume was purchased for a little less than $35.5k. This was a high trading moment for BTC, which may have prevented the price from falling further.
Analysts compared the recent market movement to Bitcoin’s 2013 bull run because fundamentals remained robust. PlanB remarked on Tuesday that such extreme volatility was not new to Bitcoin, repeating its 2013 performance.
The analyst added:
🟠New dot: May close $37,341.. -35% .. we knew #bitcoin would not go up in a straight line and several -35% drops are possible (and indeed likely) in a bull market. Starting to look like 2013. S2F(X) model intact. pic.twitter.com/Yu3PAplex5
— PlanB (@100trillionUSD) June 1, 2021