Bitcoin Investors Are Willing To Hold For Long Term
As we enter into the 2nd half of the year 2022, the big investors are actually increasing their holdings of different cryptocurrencies, including Bitcoin. For many, the dip in December was nothing but some normal market reaction.
For many experts, long-term investments such as this one by the investors tell us that the cryptocurrency market is indeed stable.
Furthermore, the Bitcoin (BTC) amount present in the illiquid wallets is also rising. These are the wallets which spend very less as compared to the inflow of cryptocurrencies. In other words, people are actually holding cryptocurrencies instead of active trading.
If we look at the Bitcoin (BTC) amount that didn't move in a 1-year duration, the numbers are up. In the grand scheme of things, that's staggering and a very healthy factor for the market.
Bitcoin Price Crash In December
In December last year, many investors were caught off guard as the BTC took a nose dive and lost 40% of its market value. The 2nd number cryptocurrency 'Ethereum', also lost pretty much the same amount from its price.
The reasons were numerous for the big drop - From inflation to higher US interest rates to COVID and so on.
There are many cryptocurrency experts who believe that there is no way to tell the next direction of BTC with any validity. The cryptocurrency is just too wild to be judged by the traditional techniques and fundamental tools.
In 2017, the price of BTC increased from $1000 per coin to a value of $20,000. Then in the first few months of 2020, the value of BTC was lower than $4000 before staging a spectacular recovery once again.
However, those in favor of Bitcoin (BTC) believe that cryptocurrencies are making their way into mainstream investing and finance.
According to a research firm, the long-term holding of BTC is rising among investors. This is an indication that the coin is moving from the weak-hands investors into the strong-hands investors.