eports are still rolling on from the carnage of "Black Thursday" when markets around the world recorded record drops. For Bitcoin bulls, though, new data indicates that crashing markets were just another opportunity to buy the dip.
- Bitcoin’s long-term investors continue to hoard over 40% of circulating supply, despite last month’s price crash.
- Hash rate for the network is back on the rise after a sizeable reduction in mining difficulty.
- Strong fundamentals don’t mean much when markets act on fear, so investors should remain cautious.
Data suggests that long-term Bitcoin bulls are still holding BTC despite crashing markets, both traditional and otherwise.
Bitcoin Bulls Show Their True Colors
The economic principle of supply and demand determine Bitcoin’s price. Those who “HODL,” or hold BTC, take a portion of circulating supply off the market until they are willing to sell.
In the span of two days, Bitcoin crashed from just below $7,000 to $3,900. This was a result of multiple factors, the primary of which being failed oil talks between Russia and OPEC.
As a result, the S&P 500, to which Bitcoin is now highly correlated, fell by a whopping 9.5%. This is steep by stock market standards and triggered industry-wide circuit breakers to halt trading.
Now, as stocks look poised to launch a relief rally, Bitcoin is shaping up to do the same.
Data from CoinMetrics, published in this week’s Our Network newsletter, suggests that Bitcoin bulls were undeterred by Bitcoin’s price crash last month. On the contrary, HODLers have come out of this crash with a larger portion of the supply, indicating their ever-optimistic mindset.