A growing number of long-term bitcoin investors are increasing their bitcoin stashes as bitcoin moves into 2022. They hope that a December dip is just a seasonal blip.
Industry watchers see the underlying stability in long-term investments as a promising indicator for volatile cryptocurrency.
According to Genesis Trading, digital currency brokerage Genesis Trading, bitcoin has steadily increased in value since July last year.
It also noted that the volume of bitcoin in “illiquid” wallets, which have less than a quarter of their inflows, is increasing, which means that fewer coins are being traded.
Noelle Acheson from Genesis Trading, head of market insight, stated that “the number of bitcoins that haven’t moved in over one year has been increasing since July.” That’s quite remarkable.
Investors were still sent diving for cover when the most widely used cryptocurrency in the world fell almost 20% in December. This was roughly the same amount as the second-biggest coin, roughly the same level as the third-largest. The risk appetite was hit by inflation fears and a faster pace of U.S. Federal Reserve interest rate increases.
Although bitcoin and ether posted gains last week, up 2.9% and 6.3% respectively to $43,107, respectively, they still have a ways to go before reaching their 2021 highs at $69,000 and $48,868.
Many experts in cryptocurrency warn that it is impossible to predict the volatility of bitcoin’s price swings. It went from $1,000 to $20,000. In 2017, it was at least $11,000. It dropped below $4,000 in 2017 before rising to a dizzying height in 2020.
But bitcoin advocates and others argue that the growing acceptance of cryptocurrency in mainstream finance and investment in recent years has helped to strengthen the sector.
Delphi Digital, a cryptocurrency research company, said that their research revealed a similar shift in bitcoin holdings by investors over a longer time period. This “illustrates a transference from shorter term ‘weak hands” to long-term (‘strong hands’).
According to Will Hamilton (head of trading & analysis at Trovio Capital Management), Coinglass’s Bitcoin Fear & Greed Index, fluctuated between 10 and 29, since the beginning of the year. This could indicate a potential market bottom or buying opportunities.
He added that the previous market bottoms of July 2021, March 2020 were correlated with Fear & Greed scores of 19 & 10, respectively.
Uninitiated: 0 is extreme fear and 100 extreme greed.
If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.
Terms of Website Use
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned