Long-term buyers unfazed by Bitcoin’s recent drop to $33k. Long-term bitcoin investors were unconcerned by the cryptocurrency’s decline in value during the last few months.
Prices for bitcoin fell as low as $33,100 in the last week of January. Owing to a general decline in investor confidence in risk assets in the market. Bitcoin prices had started the year around the $47,500 mark. Bitcoin prices dropped by $10,000 from January 20 and January 22, according trading data. Making it one of the most significant price declines in recent history.
Since then, the cryptocurrency has recovered to the $38,800 mark. This is where it encounters resistance and has since fallen to the $36,800 mark at the time of writing.
However, despite the decline, bitcoin flows indicate that long-term investors. It will continue to add new bitcoin to their portfolios. Hence, short-term investors have paused, according to measures from analytics firm Glass Gate.
Earlier this week, Glassnode’s balance on exchanges statistic. Which counts the amount of bitcoin held by wallets of crypto exchanges, surpassed the 2.52 million mark, which was the highest level since April 2021, when bitcoin reached all-time highs of $69,000. Since July, the metric has steadily increased, reaching a high of more than 2.7 million in July before dropping to 2.56 million in October and remaining there ever since.
Some analysts regard exiting exchanges and a price recovery as favorable signs
Long-term buyers unfazed by Bitcoin’s recent drop to $33k. “The amount of bitcoin traded on exchanges is continuing to decline,” says the author. Following a record high of $69,000, Glassnode indicates that 42,900 bitcoins have been taken from exchanges,. ” Marcus Sotiriou, an analyst with cryptocurrency brokerage GlobalBlock, reported via e-mail to CoinDesk.nt among traders remained intact despite short-term price declines. In light of the price decline of more than 50% over the previous three months, these signs show that whales have been accumulating while short-term holders have been selling.
This analysis base on metrics for long-term holders, or people who have bitcoin in their wallets for more than five months. These metrics support this analysis. Despite the fact that bitcoin prices have fallen, data shows that approximately 100,000 bitcoins have been added to long-term holder wallets since December 2021. This shows that long-term sentiment among traders has remained stable despite recent price declines in the short term.