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HomeNEWSBehavior of the bitcoin market falls to 2018 levels • ENTER.CO

Behavior of the bitcoin market falls to 2018 levels • ENTER.CO

The first half of 2022 was one of the worst seasons for the bitcoin market. The collapse of value in cryptocurrencies and stablecoins, which began to worsen in May, paved the way for a phenomenon known as “crypto winter”, which has already begun to show certain patterns in the midst of this new “bearish” panorama. For example: only the most staunch Bitcoin investors are keeping their tokens, and not precisely on exchange platforms, but in crypto wallets: a behavior that, according to several analysts, would be bringing “calm” to the market.

And it is that after Bitcoin reached $20,000 (the value is currently over $21,600), the firm Glassnode revealed that investors in the world’s largest cryptocurrency are entering hibernation mode. This means that, due to the fact that the participants of the exchange platforms have decided to start withdrawing their tokens from these services in an accelerated way during the last months, the amount of cryptocurrencies available in “exchanges” decreased to levels similar to those they last saw in 2018, when Bitcoin was worth less than $10,000.

Right now, according to the study, there would be just over 2.4 million bitcoins deposited on these platforms, just as it happened in August of that year.

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According to Bloomberg, this scenario has caused cryptocurrency buying and selling platforms to see their balances fall by more than 20% since January 2022, which in turn has “expelled” tourists from Bitcoin, leaving only the I play those who are known as “holders”; that is, those investors who, instead of selling their cryptocurrencies, prefer to keep them for long periods of time.

It is uncertain whether or not the cryptocurrency market will continue to decline in the coming weeks, although some readings predict that Bitcoin will continue to fall. However, other media sources assure that, in the event that Bitcoin manages to rebound between US$26,000 and US$28,000, the end of this downward phase that has been maintained so far in 2022 could begin.

Images: Archive

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