Key Points
- Despite Bitcoin’s price decline, most addresses continue to hold their Bitcoin.
- The Bitcoin cycle indicator suggests the market is transitioning into a bear phase.
Bitcoin’s recent price drop has sent ripples through the crypto industry. Despite this, those who hold Bitcoin (BTC) remain optimistic.
Bitcoin HODL Waves
Bitcoin HODL waves indicate that less than 10% of Bitcoin has been moved in recent months. The majority of tokens are being held by the addresses. This could be interpreted in several ways.
On one side, this could indicate long-term confidence among addresses. Holders may believe this is a temporary dip and that the price of the king coin will recover over time.
On the other side, this could also imply that investors are hesitant to sell their Bitcoin for less than their purchase price, and are reluctant to sell their BTC at a loss.
However, according to the Bitcoin cycle indicator, the market is the least bullish it has been since September 2023. This could suggest that we are in the late stages of a bull run, transitioning into a bear market characterized by declining prices.
State of Bitcoin Miners
Another factor that may influence Bitcoin’s price in the long term is the condition of the miners. Recent data indicates that the current decline in hash rate is as severe as the one observed during the collapse of the FTX exchange in late 2023.
A significant drop in hash rate could compromise the security of the Bitcoin network, making it more centralized. This could also lead to miner capitulation. If miners begin to sell their Bitcoin in large quantities to stay profitable, it could create additional downward pressure on the price.
However, a network hashrate drawdown could also signify a market bottom. If history repeats itself, the price of Bitcoin could rally in the future.
At the time of writing, BTC was trading at $61,596.57 and its price had increased by 1.79% in the last 24 hours. The velocity at which BTC was trading had significantly increased, indicating a surge in the frequency of BTC trading.