Bitcoin Price Plummets to $55,000: Why Savvy Investors Are Unfazed
The post Bitcoin Price Plummets to $55,000: Why Savvy Investors Are Unfazed appeared first on Coinpedia Fintech News
As you know, the cryptocurrency is a highly volatile market. Bitcoin, the largest crypto by market cap, has all the sector’s characteristics. It has gone through several ups and downs in the last five years. In the first quarter of 2024, the return was +68.7%.
In the second quarter, it slipped to -12%. In May, 2024, the monthly return was +11.1%. But, in June, it fell to a low of -7.02%. A latest post, published by IntoTheBlock in X, says that despite its volatile nature, a significant portion of the supply of Bictoin has remained untouched for the last five years.
The timing of this post is crucial. It comes at the time Bitcoin is struggling to recover from a lower range of $55,000. What does it convey to those who consider investing in Bitcoin as a long-term investment option? Here we discuss everything you should know about this matter.
Bitcoin’s Unspent Supply: A Testament to Long-Term Confidence
The post by IntoTheBlock about the unspent supply sheds light on the steadfastness of Bitcoin’s long-term holders. It uses the Unspent Transaction Output indicator, and states that a substantial amount of Bitcoin remains in the same wallet.
While the post does not deny a possibility that some of these unmoved Bitcoins could be attributed to lost private keys or inaccessible funds, it asserts that the majority likely belongs to dedicated long-term holders. What the post easily establishes is that a large section of Bitcoin investors don’t bother about short-term market fluctuations and do maintain their belief strongly in the future value and potential of Bitcoin.
Core Bitcoin Believers And Market Stability
There are reasons to believe that the unwavering confidence of the core bitcoin believers helps stabilise the market during periods of extreme volatility. The argument that these core bitcoin believers are the foundational support of the crypto is also acceptable.
Bitcoin Market Landscape: A Quick Analysis
At the time of writing this article, Bitcoin is going through a downtrend. Its price is approximately $55,364. Its 30-day price change stands at -23.4%, and its 7-day change remains at -11.5%. In the last 24 hours also, the price has seen a drop of 4.1%.
In mid-March, the price was as high as $73,000. Since then, the price has been consistently weakening. Around three days before, the price was nearly $62,862. Later, the price plummeted sharply, creating long red candlesticks.
In conclusion, as long as Bitcoin enjoys the confidence of its core believers, those seeing BTC as a long-term investor have nothing to worry about.
Stay tuned to Coinpedia for more such interesting updates on the Bitcoin market!
