- Most addresses continued to hold Bitcoin despite the market drawdown.
- The velocity at which BTC was trading had surged materially.
Bitcoin’s [BTC] recent decline in price has sent shockwaves across the crypto sector. However, despite the decline in price, HODLers remained positive.
Will HODLers stay put?
Bitcoin HODL waves indicated that Only less than 10% of Bitcoin had been moved in the last months, the majority of the tokens were being HODLed by the addressees.
This could be interpreted in a few ways. On one hand, this indicated long-term confidence amidst addresses. Holders might believe that this is a temporary dip and that the king coin’s price will recover in the long run.
On the other hand, this could also mean that investors may be unwilling to sell their Bitcoin at a price lower than what they bought it for and are reluctant to sell their BTC at a loss.
Source: X
However, according to the Bitcoin cycle indicator, the market is the least bullish it’s been since September 2023.
The indicator suggested that we might be in the late stages of a bull run, transitioning into a bear market characterized by declining prices.
It could also indicate a decrease in overall investor optimism about Bitcoin’s price in the near future.
Source: CryptoQuant
How are Bitcoin miners holding up?
Another factor that can impact Bitcoin’s price in the long run, would be the state of miners.
Recent data indicated that the current decline in hash rate is as severe as the one observed during the collapse of the FTX exchange in late 2023.
A significant drop in hash rate could weaken the security of the Bitcoin network, making it more centralized.
Moreover, this can also result in miner capitulation. If miners start selling their Bitcoin in large quantities to remain profitable, it could create additional downward pressure on the price.
However, a network hashrate drawdown is also indicative of a market bottom. If history repeats itself, the price of Bitcoin could rally in the future.
Source: X
Read Bitcoin’s [BTC] Price Prediction 2024-25
At the time of writing, BTC was trading at $61,596.57 and its price had grown by 1.79% in the last 24 hours.
The velocity at which BTC was trading at had grown materially, indicating that the frequency at which BTC was trading at had surged.
Source: Santiment