It is time to start adding bitcoin again to your investment portfolio despite the downtrend. This is the message from long-term holders and investors, as a bulk of Bitcoin holders have been holding BTC for more than a year amid the uncertainties of the bearish crypto market.
Furthermore, some analysis firms remain bullish on the future price action of Bitcoin as BTC may be undervalued at the $20K price level.
Bitcoin Is In Accumulation Mode
The Puell Multiple is a tool that measures one-year revenue growth among Bitcoin miners. According to CryptoQuant analysts, the daily issuance of BTC in U.S. dollars by the 365-day average ratio has placed bitcoin in a green zone with a reading of 0.5.
This means that newly minted bitcoins are currently undervalued, providing a perfect opportunity to collect more bitcoins for tremendous return on investment (ROI) in the long run.
CryptoQuant said, “The macro environment is not supporting the bitcoin price as USA economic data is still coming worst than expected. Economic activity is decelerating faster than expected.” According to data, 62% of wallets have held Bitcoin for more than a year.
However, 32% of wallets sold their assets within a year. Last but not least, only 6% of holders have held their bitcoin for a month. Analysts at Cryptoquant confirmed that a price bottom formation is probably at a distant end, citing fundamental concerns.
According to CoinMarketCap, Bitcoin is trading near $19.7K, down by 0.35% from yesterday. However, Bitfinex’s analysts stated, “This persistent accumulation of bitcoin throughout bear markets demonstrates the numerous holders’ strong commitment to and long-term belief in cryptocurrency.”
Analysts said the number of bitcoins held by investors had touched a record 12.92 million. The number of wallet addresses with between 1-10 bitcoins is around 750K and is still growing.
