Bitcoin investors have devised different strategies to manage the ongoing Bitcoin price dip, with the asset correcting by up to 70% from it’s all-time high which was recorded late in 2021. Interestingly, recent data by Tipranks has revealed that most investors still appear to HODL the flagship currency.
Tipranks data revealed that 62% of all Bitcoin holders in the world today have not sold any part of all of the digital assets for more than a year even in the prevalence of the currently depressing marker conditions. Unsuprisingly, 32% of investors sold the asset between one and twelve months as at 1st September 2022.
This finding has highlighted the currently subsiding pressure to sell Bitcoin among investors as further indicated by a Finbold result released on 25th August, 2022. The Finbold report indicated that Bitcoin’s cryptocurrency exchange deposits under the seven-day moving average dipped further to hit 1,921. This is the lowest it has ever been in the past two years.
It is worthy to note that Bitcoin is still navigating the current inflation crisis coupled with the United States Federal Reserve interest rate hike. Bitcoin fell below $20,000 in July but made a slight recovery towards $25,000 in reaction to the previous interest rate hike. The asset has however plunged below the level in response to the Fed’s latest activity.
Although the short-term looks uncertain, Bitcoin preachers view the current bear market as an opportunity to acquire different assets cheaply. At the same time, many investors are also holding on to the asset in anticipation of a future rally which is a possibility supported by different cryptocurrency analysts and market observers.
However, another section of the market believes that Bitcoin’s correction will extend. CEO of Tallbacken Capital Advisors – Michael Purves – believes Bitcoin will trade at $15,000, noting that the digital asset’s long-term momentum has become shaky. Although Bitcoin’s long-term future remains uncertain, it is unclear how long investors will hold onto the asset considering the prevailing cryptocurrency winter.
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