Investors in the volatile cryptocurrency market frequently exhibit exaggerated emotional responses. If the market advances, wealth may persuade people to do things they later regret. When they see red numbers, people are sometimes encouraged to sell their coins for stupid reasons.
However, smart investors over the course of history have controlled the urge to sell when they see red numbers. Data from analytics firm, into the block suggests that Bitcoin HODLers have in fact increased by more than 7 million when Bitcoin was at its peak. To be specific, on November 5, 2021 the price of Bitcoin was $65,218.33 and the addresses which held Bitcoin for more than a year were 23.14 million. As of October 31, the price of Bitcoin was $20,691.33 and the active number of addresses which held Bitcoin for more than a year were 30.48 million.
Cruiser wallet addresses or the people who hold Bitcoin for more than twelve months have remained more or less flat since Bitcoin drop from its peak to 36k levels. The data also showed that balance in these HODL addresses has also increased as the price dropped. Cruiser addresses have remained flat. It suggests that HODLers are buying the dip, hoping for massive future return on investment.
These metrics indicate that no matter what, people long on Bitcoin will not sell the coin despite extreme price drops or market conditions.
Due to the current inflationary environment, investors are scrambling to find possible assets that could serve as securities. Many people might think of Bitcoin as a hedge against inflation and the general trend of decreasing markets. However, the S&P 500 and cryptocurrency markets’ levels of recent correlation say otherwise.
Todayq noted that despite its ineffectiveness as an inflation hedge, Bitcoin has demonstrated significant price range stability. It has primarily traded between $19,000 and $21,000 recently, indicating a decrease in volatility. For the first time since 2018, the volatility of Bitcoin also fell below those of the Nasdaq and S&P 500. As of publication, the price of one bitcoin is $17,865, a decrease of 3.68% from yesterday.
