- Most addresses continued to hold Bitcoin despite the market decline.
- The speed at which BTC traded had increased significantly.
Bitcoins [BTC] the recent price drop has sent shockwaves through the crypto sector. However, despite the price drop, HODLers remained positive.
Will HODLers stay put?
Bitcoin HODL waves indicated that only less than 10% of Bitcoin had moved in recent months; the majority of the tokens were HODLed by the recipients.
This can be interpreted in a few ways. On the one hand, this indicated long-term trust between the addresses. Holders might think that this is a temporary dip and that the price of the king coin will recover in the long term.
On the other hand, this could also mean that investors may be unwilling to sell their Bitcoin at a lower price than they bought it for, and reluctant to sell their BTC at a loss.
Source:
However, according to the Bitcoin Cycle Indicator, the market is the least bullish since September 2023.
The indicator suggested that we may be in the late stages of a bull run, moving into a bear market characterized by falling prices.
It could also indicate a decline in investors’ overall optimism about Bitcoin’s price in the near future.
Source: CryptoQuant
How Are Bitcoin Miners Standing Up?
Another factor that could affect the price of Bitcoin in the long run is the condition of the miners.
Recent data indicated that the current hash rate drop is as severe as that observed during the FTX stock market collapse in late 2023.
A significant drop in the hash rate could weaken the security of the Bitcoin network, making it more centralized.
Moreover, this could also lead to capitulation of miners. If miners start selling their Bitcoin in large quantities to stay profitable, this could put additional downward pressure on the price.
However, a drop in the network hashrate also indicates a bottom in the market. If history repeats itself, the price of Bitcoin could rise in the future.
Source:
Read Bitcoin’s [BTC] Price forecast 2024-25
At the time of writing, BTC was trading at $61,596.57 and the price was up 1.79% over the past 24 hours.
The speed at which BTC traded had increased significantly, indicating that the frequency at which BTC traded had increased dramatically.
Source: Santiment