Long-term investors continue to buy cryptocurrency
19.05.2021 | auglovoi
The bitcoin correction on online exchanges led to a massive reduction in long positions and the sale of available coins. All indications are that these events are of a panic nature and have no fundamental reasons. However, long-term investors have decided to take advantage of the situation and increase their investments in digital gold. This is according to report by Glassnode analysts.
The current correction of more than 35% from the all-time high has not exceeded the depth of the previous market’s 2017-2018 decline. Also, bullish sentiment in the market is still only about 200 days old, compared to exactly one year last time.
The panic mood in the market is also indicated by the entry profitability ratio, which is currently below unity. This means that most investors sell their coins cheaper than the purchase price. Also below unity, the rate of short-term holders, that is, those who have held coins for less than six months and the number of wallets with a zero balance has increased, with more than a million addresses having spent all their coins completely.
While short-term investors panic, long-term buyers continue to build up their positions. There are 6,000 new wallets that have received coins to their addresses and haven’t spent them in over 155 days. Looking by volume, the accounts of long-term investors who have never spent bitcoins have accumulated about 58% of all coins issued.
To summarize, we can say that short-term investors and speculators played for a loss, while long-term buyers got a great opportunity to buy at the local market bottom. And this despite the information background about the environmental friendliness of digital gold mining.