After stocks closed at a level not seen since December 2020 and a really complex macroeconomic situation in the US. also the bond market has been severely affected presenting a loss of 1.2 trillion dollars this week.
Bitcoin has also lost some ground this month of September which had started with an upward trend, everything indicates that it could show a decline of 6.2% since the beginning of the month. Something that has been strongly influenced by the little appetite of people to invest in markets as volatile as cryptocurrencies at the moment and that they have decided to place their money in more stable options.
What will happen to Bitcoin in the short term?
With a blow that has shaken all financial markets, Bitcoin is not far behind, being sent to levels not seen since November 2020 by presenting the lowest weekly close of bitcoin since that date, however, analysts estimate that the bottom could be at $18,800 as it has been a hot spot in recent weeks. The IncomeSharks trading account also claimed that a setback could accompany the US midterm elections in early November, but stopped short of saying bottom had been reached.
What posture is expected for Bitcoin holders?
Given this situation, it would not be difficult to think that the holders of Bitcoin decide to hold onto their long-term investment and refuse to sell before new market lows that have submerged their investments. In fact according to the analysis company glass nodeunder a metric called “Coin Days Destroyed (CDD)” Bitcoin shows how it has reached new lows.
“The total volume of bitcoin coin-days destroyed in the last 90 days has effectively reached an all-time low,” Glassnode commented. “This indicates that coins that have been HODLed for several months to years are the most dormant.”
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