62% Of Addresses Hold Bitcoin Holdings For More Than A Year In Ours

The year 2022 turned out to be unfavorable for the crypto market. The industry faces a long-running downtrend, with flagship coin Bitcoin down almost 70% from its November 2021 ATH. Still, market fear hasn’t ruined interest investors for bitcoin. Data shows that more than half of investors continue to hold on to their BTC holdings even during the crypto winter.

According to statistics viewed by blockchain analytics firm TipRank, 62% of BTC addresses have not sold their BTC collection for a year or more. Additionally, data from the site as of September 1 indicates that 32% of investors sold their BTC holdings in the previous 12 months.

Related Reading: Bitcoin Derivatives Pool Grows, More Volatility Soon?

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The downward trends in the market created selling pressure among investors which also continued at the time. A recent report from Glassnode blockchain research noted that BTC deposits on exchanges in terms of seven-day average movement have reduced 2-year low at 1,921 BTC.

Notably, this crypto winter has surpassed the bloodbaths of 2017 and 2019 in crypto price declines. Although previous downtrends occurred due to the bursting of a bubble, the current downtrend was caused by macro factors.

The collapse of TerraLuna and the Nasdaq’s 22% sale generally unsettled market sentiment. Then the US Federal Reserve seemed to control inflation with its hawkish approach and has been raising rates ever since. And as the Fed raises rates, the market sees further selling, driving prices down further.

bitcoin price analysis

In the current market climate, Bitcoin is struggling to maintain its position above $20,000. The Fed’s remarks remain a major concern to keep BTC prices from surging. As of this writing, the price of BTC stands at $20,065, down 0.70% in the last 24 hours.

Nonetheless, Bitcoin is currently navigating the inflationary environment amid unfavorable remarks from the Fed. In June, the Fed rate hike sent the price of BTC crashing below $20,000, but it soon showed signs of recovery and BTC claimed the $25,000 level.

Alternatively, the price of BTC remains low in response to the latest Fed activity.

Bitcoin price is currently trading above the $20,000 level. | Source: BTCUSD price chart from TradingView.com

Analysts remain bullish on BTC

At the same time, some industry experts view the current market climate as an opportunity to buy crypto.

Mike McGlone, senior commodities strategist at Bloomberg Intelligence, believed that assets like BTC and gold will see some resistance and price rally in the second half of the year. McGlone Noted;

“If stocks go soft, Bitcoin, gold and bonds could reign in 2H – Bitcoin’s propensity to outperform most risk assets and gold most commodities could play out in 2H, especially if the stock market continues to succumb to the jaws of the FederalReserve.”

Related Reading: WATCH: Bitcoin September Takeaways: The Good, The Bad & The Ugly | BTCUSD September 1, 2022

Similarly, some believe that it takes an extended period for BTC to realize its previous gains. The CEO of Tallbacken Capital Advisor predicted that Bitcoin price would see even more dumps to come. He expects the price of BTC to reach the $15,000 level and claims that Bitcoin’s long-term momentum has become fragile.

Featured image from Pixabay and chart from TradingView.com

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62% Of Addresses Hold Bitcoin Holdings For More Than A Year In Ours

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