It is time to start adding bitcoin again to your investment portfolio despite the downtrend. This is the message from long-term holders and investors, as a bulk of Bitcoin holders have been holding BTC for more than a year amid the uncertainties of the bearish crypto market.
In addition, some analytics firms remain bullish on Bitcoin’s future price actions as BTC could be undervalued at the $20K price level.
Bitcoin Is In Accumulation Mode
The Puell Multiple is a tool that measures one-year revenue growth among Bitcoin miners. According to CryptoQuant analysts, the daily issuance of BTC in U.S. dollars by the 365-day average ratio has placed bitcoin in a green zone with a reading of 0.5.
This means that newly minted Bitcoins are currently undervalued, making a perfect buying opportunity to gather more bitcoins for a tremendous return on investment (ROI) in the long run.
CryptoQuant said, “The macro environment is not supporting the bitcoin price as USA economic data is still coming worst than expected. Economic activity is decelerating faster than expected.” According to data, 62% of wallets have held Bitcoin for more than a year.
However, 32% of wallets sold their assets within a year. Last but not least, only 6% of holders have kept their Bitcoin for a month. The CryptoQuant analysts confirmed that a price bottom is probably at a far distance to be formed, citing fundamental concerns.
According to CoinMarketCap, Bitcoin is trading near $19.7K, down by 0.35% from yesterday. However, Bitfinex’s analysts stated, “This persistent accumulation of bitcoin throughout bear markets demonstrates the numerous holders’ strong commitment to and long-term belief in cryptocurrency.”
The analysts said the number of bitcoins stored by investors had touched a record 12.92 million. The number of wallet addresses holding between 1-10 bitcoin is nearly 750K and still rising.