Bitcoin displays this well-known bear market tendency
On-Chain Analytics Platform InTheBlock notes a familiar pattern that is typical with Bitcoin in most bear markets – investors with long-term horizons increase their holdings during bear markets.
According to a chart provided with the tweet, the percentage of Bitcoin owned by addresses that held for one year or longer has increased in prior bear markets, and this tendency appears to be repeating itself.
According to the composition of IntoTheBlock holders by holding time, 61% of Bitcoin holders have held their coins for more than a year, 33% have held their coins for a year, and 7% have held their coins for less than a month. With the bulk of Bitcoin holders being medium to long-term holders, this might suggest that Bitcoin may have been under buying pressure from this class.
Bitcoin and cryptocurrency price action
Bitcoin’s latest climb to $32,375 on May 31 was fleeting, as the value plummeted below $30,000 in the first few days of June. The majority of altcoins followed BTC on its ascent. Most are currently in the red, losing value.
At press time, Bitcoin, the largest crypto by market capitalization, was trading at $29,659, down nearly 1% in the previous 24 hours. Ether was changing hands at $1,752, down 3.11% over the same period. Most other major cryptos are crashing with Ethereum, registering losses of between 3% and 8%. Investors continued to avoid riskier assets, which led to volatile trading conditions due to growing inflationary and recessionary fears since the start of this year. A few assets, like Stellar (XLM) and Bitcoin SV (BSV), however, were slightly higher, trading in the green.
Bitcoin dominance, which refers to Bitcoin’s market share on the overall cryptocurrency market, rose slightly to 46.3%, while that of Ethereum was 17.5%. The crypto market capitalization had declined slightly by 1.90% to a record $1.22 trillion at press time.
