The Data revealed that investors who held bitcoin for the long-term have started to accumulate the currency as per recent predictions that Bitcoin price might go down. But BTC’s price refused to go down. The latest price tag is $33,000, which is a $500 increase from yesterday’s price. Investors have not responded to downtrend news, and they further invested in Bitcoin. Back in May 2019, the prices of bitcoin diminished, followed by an overall cryptocurrency crash.
Joel Kruger, a London-based financial and forex market analyst predicted that a further downtrend can be faced by Bitcoin. The new price can go down to $20,000, under the global market opinion. But as of now, the market has supported bitcoin prices pretty well. Analysts believe that the recent crash in stock markets across the globe and the possibility of a new pandemic spread of the Delta variant of Covid-19 can still hurt the crypto market and prices.
Glassnode projected investors’ behavior via Glassnode metrics, famous as Liveliness, market has noticed a change in the behavior of long-term investors’ “holding behavior.” Rather than holding their digital assets, they decided to accumulate a large number of assets. This accumulation has changed the market pattern. It has been noticed that bitcoin accumulation outpaced the bearish rumors that bitcoin price is crashing down. A higher degree of assets inflow is not a sign of bearish cycles.
The recent price stability in bitcoin is also rooted in the spike, in the trade volume recorded by bitcoin, earlier at the start of this calendar year. For the first quarter of the financial year, 20201 bitcoin trade volume mounted over $6 trillion as compared to the fourth quarter of the financial year 2020, which is $1.14 trillion.
Therefore, analysis of the number indicates that most of the long-term investors traded their assets between January 20201 and May 2021. The higher trade volumes of crypto exchanges across the globe showed the retail demand due to the selling pressure on long-term holders. But by the month of April, the rapid selling tarnished the normal trend. This urgency was due to the worldwide crash of the crypto market. The long-term investors purchased a lot of digital assets in the month of May.
Now bitcoin prices recover, the long-term traders decided to go for short-term selling to protect against any further price slump.
Willy Woo also said that it is obvious that long-term traders are selling up their coins at competitive prices. They will wait now for the time when prices further go down. There are clear signs that prices will slump further. The rapid accumulation will not be able to save bitcoin for too long.