Bitcoin
Why Experienced Investors Don’t Let Them Shake Them
The cryptocurrency market is notoriously volatile, with Bitcointhe largest cryptocurrency by market capitalization, symbolizing this characteristic. Over the past five years, Bitcoin has experienced numerous fluctuations. In the first quarter of 2024 alone, it returned +68.7%.
However, Q2 2024 was not as promising, with returns falling to -12%. May brought some relief with a monthly return of +11.1%, but June saw another drop to -7.02%. Despite these ups and downs, a recent post by IntoTheBlock on X highlights a significant trend: a substantial portion of Bitcoin’s supply has remained untouched for the past five years.
The timing of this post is crucial as Bitcoin struggles to recover from a lower range below $55,000. What does this mean for long-term investors? IntoTheBlock’s analysis using the Unspent Transaction Output (UTXO) indicator reveals that a large amount of Bitcoin has been sitting in the same wallets for years.
Unused Bitcoin Stock
While the publication acknowledges that some of these unmoved Bitcoins may be due to lost private keys or inaccessible funds, it argues that the majority are likely held by dedicated long-term investors. This suggests that a significant number of Bitcoin holders remain unfazed by short-term market fluctuations, firmly believing in Bitcoin’s future value and potential.
This unwavering confidence among Bitcoin’s core believers plays a crucial role in stabilizing the market during periods of extreme volatility. These steadfast investors are often seen as the cryptocurrency’s fundamental support.
There is reason to believe that the unwavering confidence of Bitcoin’s core believers helps stabilize the market during periods of extreme volatility. The argument that these core Bitcoin believers are the fundamental support of crypto is also acceptable.
Current Market Trends
At the time of writing, Bitcoin is in a bearish trend, with its price hovering around $55,364. Over the past 30 days, Bitcoin’s price has fallen by 23.4%, with an 11.5% decline in the past seven days and a 4.1% drop in the past 24 hours. In mid-March, Bitcoin prices peaked at $73,000, but since then, it has been steadily weakening, dropping sharply in the past few days.
In conclusion, as long as Bitcoin maintains the trust of its core believers, those who consider Bitcoin as a long-term investment have little to worry about. Despite short-term volatility, the enduring faith of these investors suggests a resilient future for Bitcoin.
Read too: Peter Schiff Predicts Bitcoin Price Drop to $38K
Do you think mainstream Bitcoin believers are right to hold on during dips? Is Bitcoin a long-term investment for you?