Bitcoin Holds Steady Despite Recent Dip
Bitcoin (BTC), the leading cryptocurrency, experienced a sharp decline following a recent surge to a two-year high, fueled by the much-anticipated approval of ETFs in the U.S.
While some investors opted to cash in their gains below the $50,000 mark, experts emphasize that the underlying bullish trend remains resilient.
In the realm of Bitcoin (BTC) transactions, seasoned investors, often referred to as “strong hands,” are acquiring coins from weaker counterparts who are selling. This dynamic is not unfamiliar to cryptocurrency veteran Gabor Gurbacs, a strategy advisor at Tether Limited and VanEck, who shared his insights on Jan. 19.
Gurbacs acknowledges that the current situation is not groundbreaking, aligning with his excitement about the potential impact of U.S. regulators approving Bitcoin ETFs. He envisions a substantial increase (10x-50x) in the accessibility of Bitcoin as an investment tool for diverse asset managers within a year.
In parallel, on-chain analysts have gauged the resilience of long-term holders. According to the findings of a pseudonymous Bitcoin (BTC) analyst, many of these holders maintain their assets for 1.5-2 years before realizing profits. This trend has reportedly been consistent for at least a decade.
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In contrast, the notion of taking profits after 3.5-4 years of HODLing is considered an outcome of bullish market phases, as highlighted by the author and host of the Alpha Beta Soup channel on trading.
Glassnode researchers reveal that, given current prices, the average long-term holder enjoys a 55% profit on their initial deposit. Analysts view this metric as “meaningfully positive” as of January 2024.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
