The price of Bitcoin stayed relatively flat at a sum close to $34K last Sunday- thereby signifying a plateau of the BTC price. And yet, the value of BTC/USD dropped by around 50% from its all-time high of around $65,000 in the middle of April. Nevertheless, this massive move at a downward trajectory has not really prevented investors from going all out on the long-term bullish outlook of this cryptocurrency.
Bitcoin Going Through A Roller-Coaster Phase
As stated by one of the metrics of Glassnode which has been considered Liveliness, the market has been witnessing multiple shifts in their long-term inventors. Hodling has been a major presenter of the ritualized response of the investors of crypto to major market downtrends which is simply a meme-driven investment strategy that finds its roots through a forum post back in 2013.
At the same time, Liveliness has been considered as the ratio of cumulative coin days which have been destroyed by the network. The number fluctuates between 0 and 1, with zero representing the highest proportion of Bitcoin supply. Incidentally, the value also shows that the coin day accumulation over a global sector has been readily outpacing coin days which have been destroyed in on-chain activity.
Yet, a far higher degree of distribution doesn’t necessarily predict higher bearish cycles. For example, the last few months saw the Liveliness Ratio increasing at the same rate as the prices of Bitcoin. This suggests that despite a far lower behavior of hodling, the market of Bitcoin does not get through a bearish phase.
This phase could also be the result of the massive increase in trading volumes at the onset of the year. In the first quarter itself, the trading activity of Bitcoin spiked to a value over $6 trillion- which was compared to the $1.14 trillion which took place in the last quarter of 2020. This data has been received from Bitcoinity.
