Bitcoin is stabilizing above $58,000, with 75% of BTC in circulation sitting still for over 6 months. This trend reflects a wait-and-see sentiment in the market, with investors seemingly preferring to hold on to their assets while waiting for more favorable conditions.
Bitcoin Price Stabilizes, Awaiting Decision
In recent weeks, global markets have been under strong downward pressure, largely due to the Federal Reserve (FED) delaying its move to more accommodative policy by lowering interest rates.
The S&P 500 fell about 9.7% in early August before rallying again on rumors of a potential Fed pivot in September. Today, the S&P 500 is back near its all-time high of $5,670.
At the same time, gold also benefited from the situation, reaching a new all-time high earlier this week at $2,530 an ounce.
💲How to buy Bitcoin (BTC) easily in 2024?
The Bitcoin price had already started a correction phase since March 2024, after recording a 280% increase in 1 year.
Bitcoin price against the dollar since March 2023
Alongside the rapid crash of the S&P 500, Bitcoin price hits low of $49,250down 33% from its peak of $73,750.
From, It has rebounded about 24% and is currently between $58,000 and $61,000.
The cryptocurrency market, including Bitcoin, seems to be waiting for a more favorable environment for risky assets before resuming an upward trajectory. Investors anticipate a possible recovery of BTC by the end of 2024.
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75% of BTC immobile for more than 6 months
During this period, it is striking to note the low activity on blockchains. Bitcoin and Ethereum recently recorded their lowest transaction fee-earning days in several years.
Bitcoin owners appear to have overwhelmingly adopted a “HODL” strategyor “keep” in French, consisting of buying and keeping their BTC for the long term so as not to be affected by the short-term volatility of the Bitcoin price.
Evolution of BTC holding periods over time
Glassnode data reveals that around 75% of Bitcoin in circulation has not moved in over 6 monthsindicating that investors are buying BTC in anticipation of a bull market.
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Although it is impossible to predict how the BTC price will move in the coming months, The immobility of a large quantity of Bitcoins creates a certain scarcity in the market, which tends to push up prices.
However, This is not always reflected in the price of Bitcoin, partly due to other factors.such as major sales by the U.S. government or the redistribution of Mt. Gox assets, which also influence the market.
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Sources: TradingView, Glassnode
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First lured by the lure of gain, I am now trapped deep into the rabbit hole. With no way out, I have no choice but to share my knowledge and transmit the passion I have for Bitcoin. I am also the creator of Adopt a Block, an educational site dedicated to Bitcoin.
Marius Farashi Tasooji
281 articles
