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- Bitcoin investors are continuing to hodl although the price has reached near the level of $40k
- The price action of the flagship digital asset remained rangebound
- The Bitcoin market volatility has decreased, and the supply of the coin is ageing
- Retailers have begun to re-enter the volatile market
Bitcoin is the world’s most popular cryptocurrency which has seen tremendous growth amid the global pandemic. Several institutional investors have also added the asset to their portfolio making great gains. However, in mid-May the coin lost its bullish sentiment and its price dropped by more than 50%.
In recent days, due to few celebrity words the price again has been observed gaining its positive momentum. According to Glasssnode, after the crash, small term investors’ count has been observed soaring with price. Notably, yet no investors are planning to sell their holdings near the price level of $40,000.
Investors are hodling their Bitcoin at $40k
In the newsletter shared by Glassnode, a blockchain data analytics firm it was mentioned that since January bull markets are refusing sell-offs. Several investors globally have invested in Bitcoin seeing the assets performance in terms of price. Since the beginning of this year investors have purchased the coin at lower price levels. However, still there is no sign of heavy sell-off, as such investors are continuing to hodl.
Bitcoin’s price actions remained range-bound
The price movement of Bitcoin remained highly volatile in recent weeks. Following the scenario it was challenging to predict the movement of the digital asset. However, following such a scenario, traders began to use range-bound strategy by betting on both side movements. And the price of Bitcoin remained range-bound in between $30k and $41k.
Due to the aforementioned fact, BTC has been marked by low volume in recent weeks. However, over the past few days we observed Bitcoin facing modest volatility return. Still for several hodlers there are few opportunities for gaining under such circumstances.
Volatility in the BTC market has decreased
According to Glassnode, the current situation is unsurprising as what the “Hodl Waves” indicates, that indicates what proportion of BTC is being moved. Notably, the factor is based on the realized capitalization of Bitcoin that measures the market cap by taking the last traded price.
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Glassnode explained that the hodl wave is confirming that the supply of the flagship cryptocurrency is ageing, and less investors are selling. Hence, the fact came into reality with the help of low volatility.
Hodlers spending large portion in bullish market
Glassnode observed that the coins that are yet being hodled are the same that were bought from 2020 to the beginning of this year. Following the scenario, the data analytics provider concluded that such even BTCs are now in profit by a significant percentage. If such investors don’t double their buy-in price then the price of BTC will remain still.
However, few of the investors have and will take their profits from Bitcoin. Notably, what’s common is that hodlers spend a larger majority of their holdings into the strength of bull rallies. And slows their spending on when the price plunges.
Retail investors are making a comeback
The count of Bitcoiners with smaller overall holdings is observed skyrocketing.Glassnode observed that wallets with less than 1 BTC has continued to make up more and more of the overall BTC supply. INdeed, responses from retailers to the evolution of BTC as an asset can be seen in the supply distribution.
Although Bitcoin remained a volatile asset, the coin is attracting state adoption also with institutional adoption. Several headlines are composed of BTC when it comes to expanding influence. However, retailers are making noticeable inroads into the market this year.
