The correction of BTC from an all-time high of $ 64,800 to $ 47,000 and then back to $ 55,000 affected only short-term traders. Long-term Bitcoin holders have not been affected by the price changes.
According to the latest report from research firm Glassnode, the latest Bitcoin correction has impacted new users of the cryptocurrency, while the HODL owners of BTC have not been affected by market volatility.
“This correction has greatly affected the relatively new market participants, and long-term holders of the cryptocurrency retain their positions,” analysts write.
Bitcoins stored for more than one month are considered “old coins” and represent a very small and dwindling share of the total transaction flow. Conversely, the number of “young coins” held for less than one week before they were spent skyrocketed towards the end of last week. This suggests that new market entrants were hurt during the last correction.
“Notably, coins older than six months have not shown a significant increase in spending since the correction in February. Long-term investors remain faithful to the cryptocurrency despite the volatility and rising prices that create an incentive for profit-taking, ”the report says.
Previous examples of this behavior have been seen at turning points in the market, such as in December, which preceded BTC’s breakout to all-time highs, and during a correction in January.
Earlier this month, analysts at Glassnode reported that BTC holders adhering to the HODL strategy are still not selling their coins, despite the all-time high for Bitcoin, suggesting further bull market potential.
According to another study by Glassnode, published in April, a new generation of cryptocurrency users are following the HODL strategy and storing BTC after a purchase for one to six months. These users entered the industry during the recent Bitcoin rally.
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