The Bitcoin price has continued to shrink in 2022 since Terra Luna initiated a significant crypto crash in Q1. The FTX and Alameda meltdown has stirred fresh selling pressure, which analysts expect to push through 2023. Moreover, confidence in centralized crypto exchanges has significantly slumped, which may push some to the insolvency route.
According to our latest crypto price oracles, Bitcoin is trading around $16,500, up from the recent lows of $15,900. The digital asset is trading 76 percent down from its ATH, $69k, set approximately a year ago.
Long-term Bitcoin critic Peter Schiff thinks Bitcoin price is yet to bottom per the current sentiments. Shiff highlighted a scenario where long-term Bitcoin holders sell their bags to sustain themselves—adding that sooner than later, only long-term holders with sustainable paychecks will survive the shakeout.
Nonetheless, long-term Bitcoin holders are optimistic about the overall Btc market, which has significant adoption worldwide. Per on-chain data, long-term Bitcoin holders perceive the current bear market as similar to 2018 one.
Glassnode explained: “Bitcoin Long-Term Holders are currently experiencing acute financial stress, holding an average of -33% in unrealized losses. This is comparable to the lows of the 2018 bear market, which saw a peak unrealized loss of -36% on average.”
Notably, Glassnode data shows that crypto exchanges recorded a sharp uptick in withdrawals toward non-custodial platforms. Reportedly, cryptocurrency exchanges have seen one of the most significant net declines in aggregate BTC balance in history, falling by 72.9k BTC in 7 days.
Further Notes on Bitcoin Market Outlook
Bitcoin (BTC) is a legal tender to two countries -El Salvador and the African Central Republic – and is regulated as a digital asset in many other jurisdictions. With a hard cap of 21 million Bitcoins and a halving to reduce the overall supply over time, market strategists are optimistic about its long-term success.
Nevertheless, global geopolitics and the prevailing macroeconomics continue to push Bitcoin prices to higher volatility. For instance, the ongoing war between Russia and Ukraine has significantly divided international regulators on using Bitcoin and other crypto assets.
Furthermore, western governments argue that Russia has used Bitcoin and other crypto assets to manoeuvre the set sanctions.
However, with the rising global inflation rate, which has significantly reduced fiat currencies’ purchasing power, Bitcoin and other digital assets are expected to record significant cash inflows.
Source: https://coinpedia.org/bitcoin/how-are-bitcoin-long-term-holders-responding-to-the-btc-price-crash/