Today, Bitcoin, the most popular cryptocurrency, is trading at US$37,032.19, according to CoinMarketCap at the moment of writing, and has fallen by 45.50% since 10 November 2021, when it reached an all-time high of US$69,000.
In this context, despite the volatility in its price, a study revealed that more than 60% of investors who bought bitcoin a year ago or over a year ago did not sell a single cent. In other words, 66.61% of the total supply of bitcoins on the market remains in virtual wallets and was not used for any transactions.
What does this mean? In previous years’ crashes, investors blew out their bitcoin portfolios out of fear of market volatility. Today, their behavior is different: they see Bitcoin as a long-term investment and are confident that the cryptocurrency will rise again. This means that they believe in Bitcoin as a long-term investment and are patient because they know something will happen soon.
Although the digital asset fell almost 50% from its last all-time high, investors tightened their belts and held on to the fall, which is why there was no massive sell-off. This is important because when there are more sell orders than buy orders the price falls. Conversely, when there are more buy orders, the price generally turns bullish.
Alistair Milne, a British entrepreneur and investor, predicts that the Bitcoin price will rebound and says that this behavior by investors has happened before: “There have only been two occasions when investors held their bitcoins for a year or more. In 2016, when the price range went from US$380 to US$450; and in 2020, when the price went above US$9,000.”According to CoinMarketCap, the price of Bitcoin today is US$37,032.19 with a 24-hour trading volume of US$29.015.615.425. The number one cryptocurrency has a live market cap of US$702.502.110.453, a circulating supply of 18.964.768 BTC coins and a maximum supply of 21.000.000 BTC coins.
