62% of all Bitcoin addresses did not sell any BTC for a year or more despite ‘crypto winter’
Bitcoin (BTC) investors have adopted different strategies to deal with the ongoing price crash, with the asset correcting almost 70% from its all-time high in late 2021. Interestingly, most investors seem to have opted to “ HODL” flagship cryptocurrency.
Notably, 62% of Bitcoin holders have not sold their asset in over a year amidst the prevailing depressed market conditions. At the same time, 32% of investors have disposed of the asset between one month and 12 months as of September 1, data from TipRanks shows.
The finding highlights the waning Bitcoin selling pressure among investors, which was further highlighted by a Finbold report on August 25 indicating that the asset’s crypto exchange deposits below the seven-day moving average plunged further to hit a two-year low of 1,921 BTC.
Bitcoin price analysis
This comes as Bitcoin struggles to hold above the crucial $20,000 level, with all signs indicating that the sell-off is likely to continue. At press time, the flagship crypto was trading just above the $20,010 level, with losses of nearly 1.5% over the past 24 hours.
It is worth noting that Bitcoin is still navigating the high inflation environment coupled with rate hikes by the Federal Reserve. In this case, Bitcoin fell below $20,000 in July, but began a sharp recovery towards $25,000 in reaction to the previous rate hike; however, the asset has plunged below the level in response to recent Fed activity.
Although the near term looks uncertain, Bitcoin supporters see the current bear market as an attractive opportunity to acquire various assets on the cheap.
Banking on Bitcoin to collect
At the same time, most investors are also being inspired to hold onto the asset in anticipation of a future rally, a possibility supported by several crypto analysts. As reported by Finbold, senior commodity strategist at Bloomberg Intelligence, Mike McGlone believes that Bitcoin and other assets such as gold will stand in the second half and rally.
However, another part of the market believes that Bitcoin’s correction is likely to extend further. For example, Michael Purves, CEO of Tallbacken Capital Advisors, believes Bitcoin will trade at $15,000, noting that the asset’s long-term momentum has become shaky.
While Bitcoin’s future remains uncertain, it’s unclear how long investors will hold onto the asset given the extended crypto winter.
In recent months, investors have appeared to pull back from risky investments amid renewed concerns that the Federal Reserve’s efforts to fight inflation could tip the economy into recession.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
