It seems that Bitcoin (BTC) Investors who made their long-term investments were not deterred by the recent major cryptocurrency crash. According to a study by Crypto Exchange Coinbase, long-term Bitcoin holders have barely sold their assets, despite the fact that the Bitcoin price is going through a drain.
Bitcoin HODLers withstand
the report Named “The Elusive Bottom” takes a closer look at the current state of the crypto market. The report states that there are clear signs that the bottom is indeed approaching anyway. In addition, 77% of all bitcoin investors have owned their bitcoins for more than 6 months. That’s only 3% lower than it was at the start of the year, indicating that long-term stockholders have sold nearly nothing.
In addition, this percentage is much higher than during the 2017/2018 market cycle. At that time, about 60% of all bitcoins were owned by investors who bought BTC more than 6 months ago. According to a report Queen Piece The fact that this percentage is much higher now is very positive. This means that there are more people who believe in the future.
Cryptocurrency credit crunch
However, the report wasn’t all roses and moons. It is also recognized that there is currently a real credit crunch within the country encryption Market. CeFi lending services in particular, such as the now bankrupt Celsius, ran into a major problem when the market crashed.
These companies took on more and more debt during the bull market, with the belief that prices would continue to rise. That didn’t happen, and at that moment, the problems with CeFi’s lending services ran like a shock across the entire market. also Miners In many cases they were forced to sell a portion of their bitcoins for sale. However, Coinbase states that this has not significantly affected Bitcoin trading volume.
“Even if the bitcoin price goes to $10,000, they will have to liquidate 16 bitcoins from their reserves every day to fill the gap, which means they can hold out for about 120 days. We think this is unlikely to have a material impact on the price, given that there are about 6 billion US dollar average daily bitcoin volumes on exchanges.”
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