Bitcoin is trying to bounce back from last week’s decline and is currently trading around the $ 35,000 mark. However, hash power continues to decline, showing that many owners have given up at low prices.
Bitcoin price has gone through a period of high volatility. The moment the BTC price fell, the market capitulated again, hitting a new all-time high of $ 3.45 billion, according to Bitcoinist data. Glass knot. This means that people have given out large amounts of coins at a loss this week.
Bitcoin Real Net Income / Loss | Source: Glass knot
It should be noted that most long-term (LTH) holders are profitable. Their spending actually offset nearly $ 383 million in net losses, according to the data. That would add a net loss of $ 3.833 billion. However, LTH only holds 2.44% of the currently circulating supply with unrealized losses.
Long-term holders have remained stuck in other bull cycles despite having seen sharp price moves in the previous market. Hence, they still hold bitcoin. In fact, the data shows that LTH has bought an additional 741,363 BTC since its first drop in late May.
On-chain analyst William Clemente ll Note:
“Bitcoin is cheap and long-term BTC owners know it.”
Complete range of LTH | Source: William Clemente ll
The analyst also made a key indication that a number of short-term (STH) holders are now converting to LTH, adding to the bullish sentiment for the leading digital asset.
Meanwhile, chartist Woonomic also confirmed the positive market sentiment and to explain:
“We have been optimistic for weeks.”
Interesting data points, however, could be the spend-output-return (SOPR) ratios of LTH and STH. While LTH-SOPR shows great volatility, STH-SOPR shows far-reaching surrender.
LTH-SOPR (orange) and STH-SOPR (green) | Source: Glass knot
Even so, STH’s real loss is less than that of the surrender event in March 2020. On the other hand, LTH is ready to issue coins with an average cost base between $ 9,200 and $ 16,300 during the week. This indicates a high level of uncertainty among the owners.
Hodler’s spending levels represent an age when the coin continues to drop to pre-bull levels. LTH is hit by sudden losses causing panic selling. Meanwhile, 23.5% of STH’s total circulating supply also suffered a loss.
The analysts’ optimistic forecasts have yet to come true as short-term stocks become long-term stocks. Until then, traders will have to wait until the spot market recovers and the on-chain indicators gain strength.
Institutions “manipulate Bitcoin to push the price down to $ 15,000”?
Institutions are involved in the Bitcoin market as it has caught the world’s attention. Often times, companies’ participation in new technologies or assets is seen as mutually beneficial. However, the famous investor Lark Davis disagrees with this view. He believes that institutions manipulate the market for their own profit, leaving the “life and death” of small investors and short-term owners to the public. in the Video Recently he shared some of his views.
Davis thinks so because organizations have the capital and the power to make it happen. He gives a few examples of big names to support his argument. At the top of the list is Guggenheim Investments. Davis accused the Chicago-based global investment firm of making deliberate tampering claims to pocket Bitcoin for its own benefit.
As BTC accelerated in May and headed for an ATH of $ 60,000, Scott Minerd, CIO of Guggenheim Investments, said in February that Bitcoin could eventually climb to $ 600,000. Speaking to CNN, he confirmed that like gold, the numbers could soar to $ 400 to $ 600,000 based on supply and demand.
Now that Bitcoin collapses and investors are losing millions of dollars, Minerd has changed his prediction. In an interview with CNBC, he said that BTC could soon bottom out at $ 10,000-15,000. He also believes the market could move sideways for the next several years before recovering.
“They tell you to sell when it’s weak and then buy when it’s super hot. That’s the trick these organizations play. “
JPMorgan had previously stated that institutions have no interest in Bitcoin at this price.
“Complete convergence or equilibrium in volatility or distribution between gold and bitcoin is unlikely in the near future.”
In response to the above claim, Davis analyzed:
“They are trying to convince you to sell your Bitcoin … but don’t let the FUD stories in these institutions’ media influence you.”
Davis believes that by making such statements about Bitcoin, institutions create a market of fear and panic that leads to a massive sell-off. This will be beneficial for the big bucks as they can buy Bitcoin for pennies per dollar. Davis commented:
“These institutes prove again and again that they are among the largest and most productive market manipulators in the world.”
Is that right?
Short term owners have suffered terrible losses. They continued to suffer when they surrendered massively yesterday. The magnitude of their losses equals all of the major declines in Bitcoin history.
SOPR-STH | Source: Glass knot
Long term and short term profit / loss | Source: Glass knot
However, the only ones that are safe are the long term owners. They maintained their position despite constant price fluctuations.
Change in the net position of long-term holders | Source: Glass knot
Even miners are currently accumulating Bitcoin, as you can see from the indicators.
Lex Moskovski, CIO of Moskovski Capital, tweets:
“Bitcoin miner outflows hit a five-year low on June 26th. Miner hasn’t sold much in the past few days.
Total Bitcoin Miner Transfer Volume | Source: Lex Moskovski
In the end, Davis concluded:
“Keep Calm and Stack Sats”.
At home at home
According to AZCoin News