Bitcoin’s downtrend (Bitcoin) Prices following the record high in April may cause first-time investors to worry. Despite this, cryptocurrency strategist Meltem Demirors believes that most long-term holders have not sold, which is a correction to clear panic sellers.
speak NBC Finance Channel, CoinShares Chief Strategy Officer emphasized that Bitcoin will continue to exist, and after 200 days of crypto market expansion, it is normal for prices to fall. “You can’t let a number rise forever,” she added, adding:
“What we see is correction and contraction, and many things that are shaken are what we call paper hands, weak hands.”
“Paper hands” is a popular market term used to describe investors who cannot afford high financial risks and start selling immediately when asset prices begin to fall. It is the opposite of the “diamond pointer”, which only represents a pressure support.
Demirors reminded that the cryptocurrency market excluding Bitcoin has risen by 200% this year, and he said that Bitcoin has always been an unstable asset class. “Even if we spent $20,000, I would not go anywhere. Last March, our Bitcoin price was $3,000,” she said, adding that “we must keep the context in mind.”
She said that many retail investors who have not conducted research are selling, while long-term holders continue to wait. “If we look at on-chain activity, long-held wallets have actually been using this opportunity to accumulate,” she added.
Glassnode data confirmed De Mills’ view. According to its data, Bitcoin addresses that do not sell their accumulated bitcoins have increased their holdings since they hit a record high in April.
Demirors said that she expects the current price level to consolidate and there are uncertainties at the macro level. “There is a lot of uncertainty about policy. There are also a lot of negative headlines,” she reasoned.
At the same time, Bitcoin is heading towards its worst quarter since then The beginning of the 2018 bear market trend, According to the encrypted data aggregator Skew. The data shows that Bitcoin fell nearly 46% this quarter, the weakest quarter since the first quarter of 2018.