Bitcoin investors dig in for long haul in ‘staggering’ shift

Jan 17 (Reuters) – As Bitcoin approaches 2022, a growing group of long-term investors are doubling down on the cryptocurrency’s hiding places in hopes that the December dip will be just a celebratory moment. a job.

Some industry observers have pointed to the fundamental stability of these long-term investments as a potentially promising indicator for exotic cryptocurrencies.

For example, since July last year, according to cryptocurrency broker Genesis Trading, the amount of Bitcoin held in digital wallets that has not been leaked for more than 5 months has been steadily increasing.

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In addition, the amount of bitcoin held in “illiquid” wallets (which spend less than a quarter of the inflow) is also increasing, and fewer coins are actively traded. Means and quotes portfolio data from several exchanges.

“It’s really amazing,” said Noel Atchison, Head of Market Insights at Genesis Trading.

However, many investors rank second to risk appetite as inflation fears and the accelerating pace of interest rate hikes eased from the US when the world’s most popular cryptocurrency sank nearly 20%. It sank a lot like a big ether coin. Federal Reserve.

Bitcoin and Ether both posted a 2.9% increase to $43,107 and 6.3% to $3,350 last week, but they are still a bit off the 2021 highs of $69,000 and $4,868, respectively. ..

Bitcoin and US Stocks

“strong hand”

Many cryptocurrency experts warn that no one is known to reliably predict sharp fluctuations in the price of Bitcoin. For example, in 2017, it went from about $1,000 to about $20,000. At the start of 2020, it fell below $4,000 at some point before it started to rapidly rally.

However, proponents of Bitcoin and other coins say that the growing acceptance of cryptocurrencies in mainstream finance and investment in recent years has fueled the sector.

Cryptocurrency research firm Delphi Digital has shown a similar shift in investors’ long-term holdings of Bitcoin: “short-term ‘weak’ to long-term ‘strong’. The transition to.”

According to Will Hamilton, Head of Transactions and Research at Trovio Capital, the Bitcoin Fear & Greed index on crypto data platform Coinglass has fluctuated between 10 and 29 since the beginning of the year, allowing for market bottoms and buying opportunities. It may refer to sex. Management.

He added, “Before July 2021 and March 2020, the market bottom was associated with degrees of fear and greed of 19 and 10, respectively.”

For starters, 0 indicates “extreme fear” and 100 indicates “extreme greed”.

Doge mask

Meanwhile, last week there were more crypto headlines.

The meme-based Dogecoin came into the spotlight after Tesla (TSLA.O) CEO Elon Musk announced that the company would accept payment for some merchandise.

Tweets from Dogecoin increased by about 12%.

“If more people try to buy Tesla products with Dogecoin, there is more demand,” Acheson said, adding that the move could improve Dogecoin’s fundamentals.

Cryptocurrency Solana is another notable altcoin, and Bank of America analysts say the Solana blockchain could pull market share away from Ethereum and “become a visa for the digital asset ecosystem.” more.

Elsewhere, bitcoin miners have recovered from mining campaigns in China and recent unrest in Kazakhstan, one of the world’s leading centers of bitcoin mining.

According to blockchain data provider Glassnode, the average Bitcoin “hash rate” is a measure of the computing power of the Bitcoin network, reaching a record high of more than 215 million tera hashes per second on Thursday. I did.

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Reporting by Medha Singh and Lisa Mattakal from Bangalore; Editing by Vidya Ranganathan and Praveen Shar

Our Standard: The Thomson Reuters Principle of Trust.


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