Glassnode research: Most BTC investors are still confident hodl Bitcoin
It seems that we were too dramatic life when each witness Bitcoin prices plummeted. Because, according to a research report from Glassnode, most Bitcoin investors are not surprised whether Bitcoin has dropped by 50% in the past five months.
Glassnode research: Why are Bitcoin investors so optimistic?
Considering the price history over the years, there does not seem to be an active catalyst enough to trigger Bitcoin’s upward momentum soon. And until May 2020, Bitcoin halving is the number one hope of the market. Besides, 2020 is considered the year of regulation for the cryptocurrency market. Therefore, this is also considered as the main factor driving the rise of Bitcoin.
Not to mention the intervention of the government in the movement to issue CBDC. Although not too related to Bitcoin or the cryptocurrency market. However, if CBDCs do not perform well as advertised, people will see the utility and practicality of cryptocurrencies more clearly.
“The Unspent transaction output metrics suggest that investors are staying put despite being at a loss. After Bitcoin’s local top in June, fewer transactions require less UTXOs to be created. That, in combination with the declining price, caused the number of UTXOs in a loss to remain at an all-time high for weeks.”
Source: Glassnode
It seems that according to Glassnode’s analysis, many Bitcoin investors are keeping the hodl trend throughout the bear market. According to the chart from the Skew cryptocurrency data platform, European investors are continuing the hodl trend with a long-term investment perspective.
“European hours have been the most active in the last month. Here hourly volumes in UTC for BitMEX’s XBTUSD contract Morning you get Asia + Europe and afternoon Europe + US. It will be hard to disrupt time zones!”
Source: Glassnode
In recent weeks, Bitcoin has begun to receive more attention from prominent investors like billionaires Mark Cuban and Bill Pulte. This shows that despite falling into the bear market, Bitcoin still receives many positive signals in the traditional financial field.
Three essential factors evaluate the growth trend of Bitcoin
To predict Bitcoin’s long-term price trend, we need to pay attention to hashrate, unique addresses, and transaction value in USD. On the contrary, in the short term, we need to consider the volume, Bitcoin’s response to lower time frames, and the ability to invest in mining.
Source: Blockchain.com
Based on the improved hashrate of the Bitcoin network, Bitcoin is currently not at risk of being exploited. However, if the Bitcoin price continues to correct below key levels like the $ 6,300 support level, it could force mining investment to occur and push the cryptocurrency to even lower support levels. Bitcoin is highly likely to drop to $ 5,000, depending on how the sentiments surrounding Bitcoin change.
Previously, AZCoin News reported that nearly 60% of Bitcoin’s circulating supply has hadn’t moved in at least a year. This figure is also correlated with Bitcoin’s reduced trading volume. Although the transaction volume has increased sharply at the end of October 2019 but reached its lowest level in the past six months at the end of November 2019.
Read more:
- CoinShares Estimates That 73% Of Bitcoin Mining Is Powered By Renewable Energy For Generating Their Crypto-Revenue
- Coinshares: 2019 Bitcoin Mining Rigs Produce Far More Hashrate Than Last Year Models