Bitcoin Wallets Continue to Rise Despite Price Drop
According to crypto analyst Ali, the number of new Bitcoin addresses has been steadily increasing even as the price of Bitcoin fell from $32,000 to $29,000. This bullish divergence suggests a stable long-term uptrend in the price of BTC.
Record Low Volatility in Bitcoin
The recent Bitfinex Alpha report reveals that Bitcoin’s volatility has hit an all-time low before a slight increase, indicating potential significant price movement in the near future. The reduced volatility at the lows, combined with the rise in new addresses, suggests that the medium-term trend may not be a downtrend.
Equity Markets Experience a Fall
The report highlights that traditional financial markets have fallen after a long period of growth. This movement, along with a low volatility index, potentially suggests an impending trend change that may be influenced by the economic-financial performance of the US and the Federal Reserve’s monetary policy.
Inactive Bitcoin Wallets
The Bitfinex Alpha report notes that nearly 70% of all existing Bitcoin has not been moved in the past year, indicating a preference for holding over the long term. The strategy of accumulation is prevalent among BTC holders, who believe in the long-term value of Bitcoin despite market collapses.
The Strategy of Holding Bitcoin
The data suggests that the preferred strategy among Bitcoin holders is holding, with new holders taking advantage of falling prices to buy BTC for the medium or long term. This strategy may be favored by shrewd and prudent investors rather than retail investors seeking quick gains.
Hot Take:
Despite the price drop, the number of Bitcoin wallets continues to rise, indicating a strong belief in the long-term value of Bitcoin. The strategy of holding Bitcoin appears to be the preferred approach among investors, suggesting a more cautious and strategic mindset in the market.
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