Analysis by Glassnode highlights the resilience of Bitcoin investors in the current price cycle. Even though Bitcoin has experienced one of the extremely deep corrections, long-term investors are refusing to sell. These investors are often called "diamond hands" and it is stated that they do not show any signs of panic.
What's Happening on the Bitcoin Front?
According to Glassnode analysts, the current Bitcoin cycle is experiencing one of the worst periods in terms of performance tied to the halving date. Analysts note that this is the first time this has happened, although the market breached a new cyclical ATH (All-Time High) level before the halving in April. BTC/USD hit a four-month low of $53,500, but even this level did not cause long-term holders to sell their assets. Glassnode noted that long-term holders are sitting on assets, and losses locked in by these groups account for less than 36% of total capital flows. He emphasized that the major capitulation events in September 2019, March 2020 and May 2021 resulted in losses of more than 60% of capital flows, and these two groups of investors also made significant contributions.
Bitcoin wallet holdings are classified into long-term holders who hold a particular Bitcoin unit for more than 155 days and short-term holders who hold it for less than 155 days. Glassnode stated that during the Bitcoin price decline, it was evident that long-term holders did not sell their assets, indicating a solid fundamental structure of the market compared to historical cycles.
Valuable Takeaways for Users
Not panicking during Bitcoin price declines emphasizes the importance of long-term investment strategies.
Long-term investors generally experience fewer losses, so it's important to learn to be patient.
It may be useful to understand how Bitcoin halving events affect the market and follow these dates.
In conclusion, the resilience of Bitcoin investors in the current price cycle once again demonstrates the importance of long-term investment strategies and calm towards market conditions. Keeping track of market cycles and major events is an important step in making informed investment decisions.
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