The largest cryptocurrency, Bitcoin (BTC), has had a 70% decline from its all-time high in November 2021, suggesting that it has already experienced the worst of this bear market as it touched the $17,500 mark.<\/p>\n
The latest CPI report for June revealed that inflation in the United States had reached 9.1 percent, the highest level since November 1981. This news only fueled a downward trend in Bitcoin and the cryptocurrency market. At the time of writing, BTC is trading at $19,590 down by more than two percent.<\/p>\n
According to cryptocurrency exchange Coinbase, long-term bitcoin investors have maintained their holdings in recent weeks even as speculators have fled the market, pushing the cryptocurrency below $20,000.<\/p>\n
The fact that long-term investors are keeping bitcoin suggests that they have faith in the currencys ability to weather what seems to be a Federal Reserve-induced down market and eventually flourish as a fiat alternative or digital form of gold.<\/p>\n
Long-term investors are those that keep bitcoin in their wallets for a minimum of six months, according to the paper titled The Elusive Bottom.<\/p>\n
Recent BTC selling has been carried out almost exclusively by short-term speculators, said David Duong, head of institutional research at Coinbase.<\/p>\n
Duong referred to investors holding onto their bitcoin as a sign of optimistic optimism that maintains the equilibrium between supply and demand in the face of speculator selling, a regular occurrence in a bear market.<\/p>\n
According to on-chain statistics, investors currently hold around 77 percent of the 21 million bitcoins available. Even if the percentage is a little lower than the early January high of 80%, it is still significantly higher than the highest of 60% that was recorded during the height of the late 2017 bull run.<\/p>\n
The information indicates that over the last three and a half years, a good amount of money has been transferred from traders or speculators to investors.<\/p>\n
This year, the Feds move to reduce liquidity in an effort to fight excessive inflation has mostly been to blame for the more than 50% decline in Bitcoins price to $20,000.<\/p>\n
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View post: The largest cryptocurrency, Bitcoin (BTC), has had a 70% decline from its all-time high in November 2021, suggesting that it has already experienced the worst of this bear market as it touched the $17,500 mark. The latest CPI report for June revealed that inflation in the United States had reached 9.1 percent, the highest level since November 1981. Continue reading
\nHeres How Long-Term Bitcoin Holders Are Reacting To The Crypto Bear Market - Coinpedia Fintech News<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"