BTC Supply Tightens as Investors Remain Committed Despite Market Volatility

Key Insights:

  • Over 50% of BTC supply has been untouched for 2+ years, demonstrating long-term conviction in digital currency.
  • Bitcoin’s weekly performance shows growth of +6%, despite experiencing a slight drop in the last 24 hours.
  • Traders are cautious ahead of the FED interest rate decision, as BTC and other currencies historically experience notable price shifts.

This morning, Ali, a prominent crypto trader, took to Twitter to share the latest findings from Glassnode. According to Ali, the data shows that over 50% of the total Bitcoin (BTC) supply has remained untouched for two or more years, indicating a tightening supply. This holding pattern suggests that investors remain committed to BTC despite recent market volatility, demonstrating a strong long-term conviction in digital currency.

Market leader BTC slips slightly

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According to the latest data from CoinMarketCap, the price of the top cryptocurrency has again experienced a slight drop over the past 24 hours. At the time of writing, BTC’s price has declined by 0.19%, currently standing at $29,306.02. However, the good news for investors is that Bitcoin’s weekly price performance remains positive, showing a growth of +6%. Despite the short-term fluctuations, the overall trend for BTC continues to demonstrate resilience and long-term potential.

During the last 24 hours, Bitcoin surged to a daily high of $29,411.23 before falling back to its current price. Its inability to hold above $29,400 may be attributed to lackluster trading activity in the market. Bitcoin’s daily trading volume is currently estimated to be $10,470,734,264, reflecting a 34.31% drop in the last 24 hours. Despite this setback, Bitcoin remains one of the market’s most popular and actively traded cryptocurrencies.

After being rejected at the $29,700 mark, BTC’s price has settled on the 9-day EMA line. However, the next 24-48 hours are crucial as the crypto’s value may experience further decline. If this happens, it will find support at the $28,800 level. But, if this support fails, the next downside target for BTC will be $27,800. As always, crypto investors and traders must remain vigilant and closely monitor BTC’s movements to make informed decisions.

Although the bearish outlook was possible, recent market activity contradicts this theory. The 9-day EMA line has crossed over the 20-day EMA line, indicating a bullish trend. Despite this, Bitcoin’s price has remained stagnant over the past few days, possibly due to traders anxiously awaiting economic data release from the US. As market conditions evolve, investors continue to monitor the situation with cautious optimism.

Crypto markets anticipate FED rate decision

This week’s macroeconomic highlight is undoubtedly the Federal Reserve’s interest rate decision, scheduled for release on Wednesday. The crypto market has a history of reacting significantly to FED interest rate decisions, with BTC and other currencies experiencing notable price shifts. As a result, traders will likely approach the lead-up to Wednesday’s decision with caution and vigilance as they wait to see how the market will respond.