Bitcoin holders’ behavior could have changed after the bearish cycle of 2018, here’s how
Three Arrow Capital CEO Zhu Su shared his views on current Bitcoin holder behavior and compared it to the previous cycle in 2018.
As the on-chain data reports, the majority of large Bitcoin investors that have been holding the cryptocurrency for more than one year prefer holding and accumulating additional coins despite the strong correction on the market.
Su Zhu explains the change in investor behavior with the unpleasant experience some traders may have had due to the cryptocurrency selling prematurely between 2018 and 2019 when it was trading at lows.
After “crypto winter” and the total absence of trading volume and buying power, the crypto market entered a recovery phase in 2020 that lasted until November 2021. The rally resulted in almost 600% growth for Bitcoin and other cryptocurrencies like Ethereum, Shiba Inu and Cardano.
Bitcoin’s Biggest Holders Are Not Following The Trend
But with the analyst’s call on the shift in investor sentiment, Bitcoin whales don’t appear to be following a pattern here, with their numbers dropping from 2,500 to 2,100 since January 2021.
The most recent correction wiped off the market approximately 100 whale-tier wallets that held more than 1,000 BTC previously. Some users have also assumed that whales are just redistributing their funds between smaller wallets.
At press time, Bitcoin is trading at $37,726 and facing another wave of selling pressure as the US pre-market shows weakness again. Altcoins are also seeing bearish trends in the market, with the majority of tokens and coins losing 1-3% in value.
