The price of bitcoin has increased by multiple ATHs for the past two months, the latest one being $58,640. Although considering its past performance, last week has been unfortunate for the digital currencies, especially bitcoin, as the price of the bitcoin has dropped to $45k, which is the lowest it has been in a few months.
This has made the narrative of bitcoins as an asset quite convoluted. Emerging investors are worried that Bitcoin may have seen its high position, but now it will drop further. Although, this does not conclude that the people with bigger accounts, including the organization, are worried about bitcoin and its cycle in the market. The evidence was provided by the previous holders that this dip has provided a better picture of the future of cryptocurrency.
Analyzing Glassnode’s data on the market is a good way to determine the performance of the coins over longer periods. However, the data and surveys predict that investors still have high hopes for digital currency in the future despite the current dip in its price. The values in the negative show holders have cashed out their coins when the price of the BTC fell. For example, in January 2021, the altcoin saw a massive dip and was priced at around $30k; therefore, according to Glassnode’s data, investors were more interested in cashing out their assets. The reason could be that they were worried that the price might fall further.
However, the data shows that the values may decline and be negative, but the overall impact is minor, and investors still want to invest, which will increase the possibility of short-term recovery. On top of this, BTC’s liquid supply on the current network has increased since 2017 with huge margins.
Furthermore, the recent shift of organizations and their interest in the currency will favor it in the foreseeable future, covering the short supply while increasing the value. As of recently, when people talk about Bitcoin, they highlight the limelight it enjoyed in early 2017. At that time, most of the people bought off their share when the investment was not as huge. However, when one analyses the given data, the limelight and profits are not short lives and will most likely carry on for a longer time.