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What happens to the traders who wait for collapses in order to accumulate Bitcoin and reduce the average price of the Bitcoin they own? Since the fall last week, there has been a rise in the acquisition of Bitcoin and Ethereum. Ethereum’s on-chain activity was increasing.
Yesterday, the number of on-chain transactions hit its highest level since May 20 — 1.38 million transactions totalling $15.04 billion in USD. Long-term ETH investors were profitable in less than 90% of cases. According to coinmarketcap.com, the price was lower than it was during the meltdown. During the fall, the price plummeted to the $2400 level; it is currently at the $2100 level after erratic market movement over the last week. As a result, traders who purchased during the crisis are not making a lot of money.
In the case of Bitcoin, dominance has grown after the crash. Bitcoin’s price has rebounded from a dip below $30000, and it is currently trading around $35660. At the present price level, traders who have added Bitcoin to their portfolio are lucrative. Currently, fewer than 75% of large investors are profitable; nevertheless, huge investor concentration has decreased. In the near term, this enhances liquidity and volatility.
According to the preceding chart, traders that purchased the ETH dip altered the In/Out of money. In the last instance, when ETH’s price reached above $2000, more than 80% of holders contributed to the “inflow” of money. When the asset recovered from the fall and the price crossed $2000, the information value grew by another 5%. Several addresses reduced the average cost of Ethereum ownership.
In the case of Bitcoin, 10% of big wallet investors have held the cryptocurrency for less than a month; yet, based on price statistics, a rather high percentage of these investors are successful. Profitable investors are among the 76 percent of HODLers who are profiting at the present price level.
Because the fall has been beneficial for Bitcoin traders and HODLers who have hoarded Bitcoin, it begs the issue of why it has not been as advantageous for Ethereum traders. This may be explained by the network effect and the demand for Bitcoin vs Ethereum before and after a price drop.