The Bitcoin market recently suffered one of the worst crashes in its 12-year history, and yet, despite the massive hit coupled with lackluster recovery trends, investors are still making huge profits.
It wouldn’t be so wrong for all the traders across the crypto streets to blame the BTC crash on panic sell-offs, but, majority of the long-term holders of the coin aren’t giving up on their investments.
According to analytics firm Glassnode, more than 73% of all Bitcoin entities are currently in the clear. In their report, the firm explored that “the Bitcoin market has just experienced the largest deleveraging since the march 2020 sell-off”, however it explained that only traders who had joined the crypto bandwagon in the past 3 months had incurred all the losses.
In simple words, while the BTC continues to trade at almost half its all-time-high price of $64,000+, most “investors got in well before current levels of around $37,000”. “The old hands didn’t panic sell nor rush for the exits”, Glassnode further noted.
According to a statistical analysis published by Decrypt, crypto wallets of big whales holding 10,000 or more BTC — which is roughly $380 million worth of cryptocurrency — increased by more than 5%. This means that the big-money investors saw this dip as an opening to dig up more Bitcoin.
While the underlined data is a strong indicator of week public confidence when it comes to buying digital money, Glassnode pointed out that “there’s no question that a large portion of the recent spending activity was driven by short-term holders, those owning coins purchased within the last 6 months”.