According to CoinMarketCap, Bitcoin is currently trading at $36,000 levels after dropping to an intraday low of $36,400.
Ethereum, like other altcoins, goes hand in hand with the decline of Bitcoin.
Positive indicator amid market redness:
According to “IntoTheBlock”, the long-term Bitcoin owners have not been affected by the recent decline and are still holding their coins, which is a positive sign.
On the other hand, short-term investors remain the main source of Bitcoin price volatility.
Short-term holders continue to be the main driver of $BTC volatility.
While long-term holders remain unfazed, the balance held by traders – addresses
Since Feb 14, they decreased their holdings by 8.7% to 1.55m BTC pic.twitter.com/KkSc7He3EL
— IntoTheBlock (@intotheblock) February 21, 2022
The balance held by short-term traders or addresses that have held bitcoin for less than a month are actively moving as the price moves.
These addresses have reduced their holdings by 8.7% in the past seven days, to 1.55 million bitcoins.
Bitcoin price is down 11.59% in the past seven days, according to CoinMarketCap data.
According to IntoTheBlock and based on the time of bitcoin holding, the majority of bitcoin holders are long-term investors, with 57% holding it for more than a year, which is a positive long-term indicator.
Only 7% have held their cryptocurrency for less than a month.
Why do long-term bitcoin holders seem unfazed?
Zhu Su, CEO of Three Arrow Capital, gave his thoughts on the current behavior of bitcoin investors and compared it to the last cycle in 2018.
One reason onchain data is showing impressive holding behavior is bc many ppl actually did buy $BTC In 2017/2018 only to sell for a loss after losing patience. Anecdotally many of these ppl are staying humble this time and buying every month regardless of what else is happening.
— Zhu Su 🔺 (@zhusu) February 21, 2022
Su attributes the shift in investor behavior to the negative experience that some traders may have had as a result of selling their cryptocurrencies very recently between 2018 and 2019, when Bitcoin was trading at its lowest point.
The cryptocurrency market entered an uptrend in the fourth quarter of 2020, which lasted until November 2021.
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