With the rapid growth of the cryptocurrency market in 2021, the composition of Bitcoin holders has greatly changed, and the market faced a major wave of new retail traders and investors who, for now, control the price of the cryptocurrency.Will Clementine, the short-term holder supply has reduced significantly, which could be a reason for the almost complete absence of both selling and buying volumes on the market.
Previously, Three Arrow Capital founders shared data on the share of U.S. citizens that own cryptocurrency. As the data suggests, 20% of all U.S. adults and 61% of all millennials with incomes over $100,000 report holding cryptocurrency. With such a large number of citizens holding some form of digital assets, the next wave of retail traders that enter the market might be the last “fresh funds” income.
During a “weak” market cycle when the majority of assets on the market enter a correction phase, the long-term holdings tend to increase as more whales prefer holding or accumulating funds. As the analyst suggests, the increase in the long-term supply also increases due to the majority of new traders preferring to hold through correction cycles.
At press time, Bitcoin is trading at $43,440 and going through a 1% drop following another risk-off cycle on global financial markets.Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience. Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.
So true, This whales fvcked up the whole BT movement and the real investors are moving away