An on-chain Bitcoin metric indicates strong hands among BTC holders
A Glassnode analyst suggests that Bitcoin holders are showing strong conviction in holding onto their coins, as indicated by an on-chain metric. The metric, known as the Bitcoin bull market correction drawdown, measures the extent to which the price has dropped from its peak after significant rallies.
According to the analyst, the recent drawdowns in Bitcoin have been relatively shallow compared to previous bull runs. This suggests that current BTC holders are historically strong and hesitant to sell their coins, even after the approval of exchange-traded funds (ETFs), which was expected to trigger a “sell the news” event.
The analyst points out that previous cycles have seen regular corrections of around 25% to 60%, but the current cycle has only experienced a 20% correction. This indicates a balance between buying support and a strong reluctance among existing holders to sell their coins. At present, Bitcoin is trading at $42,103.
Hot Take: Bitcoin Holders Show Unwavering Conviction in Current Market
An on-chain metric suggests that Bitcoin holders are exhibiting remarkable resilience in the face of market volatility. Despite recent corrections, BTC holders have shown strong hands by refusing to sell their coins. This is particularly notable considering the approval of ETFs, which typically trigger profit-taking behavior. Previous bull runs have seen larger corrections, but the current cycle has experienced shallower drawdowns. The metric indicates a delicate balance between buying support and unwavering conviction among existing BTC holders. As Bitcoin continues its journey, these strong hands may play a crucial role in shaping its future trajectory.
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