The largest cryptocurrency Bitcoin has slumped nearly 36% in the current year and is currently trading at its lowest of $29,000 recorded since 2020. As a result, Bitcoin has lost all its gains through 2021, recorded as the best year for bitcoin.
Whereas the long-term holders of digital assets, underrated by the recent losses are now currently using the latest price crash to build their holdings. Long-term holders have used this market collapse as an opportunity to accumulate.
The data from blockchain analytics firm IntoTheBlock shows that the long-term holders are gaining their tokens using this market crash, with the help of a bear market trend observed that the fall in prices makes Bitcoin more attractive.
“The percentage of $BTC owned by addresses holding one year or longer (green to blue colors) has expanded in previous bear markets – so far we’re repeating this same pattern.”
Due to heavy dumping recorded from the institutions and short-term holders to mitigate losses, the token has marked a sharp decline this year. Which is stopping the bitcoin to raise its selling pressure. Whereas crypto crash has created a greater fear in people, which has hovered around “extreme fear” for nearly all of May.
Despite this bearish market Bitcoin saw its second-largest total volumes since hitting an all-time high in November 2021. And the Bitcoin sellings have recorded a near-record amount of trading volumes, reported by blockchain analytics firm Sentiment.
The reading further highlights the massive rate at which large holders, and institutions especially have dumped their Bitcoin holdings. In addition, the Market analysis has warned people about trying to time a Bitcoin bottom.
Adding to this Bitmex co-founder Arthur Hayes says the Bitcoin’s lowest price prediction has already flirted this year as it may hit the bottom out as low as $25,000. Arthur Hayers has further stressed that the token is far from its ready to recover stage, which can be done only when its short-term holders will be liquidated.