So the dust appears to have settled on the latest Bitcoin dip. The candles are glowing more green than red. After the world’s first digital currency lost billions in market capitalization in May and sent altcoins down with it, are you wondering who’s buying now?
On-chain analysts at Glassnode summed it up in an early Monday morning tweet: “Short Term Holders are distributing. Long Term Holders are HODLing/Accumulating. Miners are Accumulating. The $BTC market is a battleground between the bulls and the bears.”
After plunging from an all-time high of more than $64,000, Bitcoin is now being buoyed by BTC believers and highly-respected investors who believe that the nascent world of digital currencies is here to stay.
“The crypto market volatility is obvious because digital currency is not yet fully mature and it has to pass through various regulatory thresholds,” Nasdaq.com reported in a summary of the May dip. “Institutional investors’ strategy of buying bitcoin and other cryptos on the dip fortifies its bullish outlook.”
That view is being supported by investors and analysts who are showing confidence in the crypto market.
“I’m looking at the whole business and how I can get involved in it with Icahn Enterprises in a relatively big way because I think, it’s here to stay in one form or another,” said billionaire Carl Ichan, who told Bloomberg he was considering a $1.5 billion stake in Bitcoin.
Investor Ray Dalio of Bridgewater Associates also voiced support for the coin, while acknowledging that it still has hurdles to clear. “I think Bitcoin’s greatest risk is its success,” he said in an interview at Consensus 2021.
“The growing involvement of respected names such as these (Ichan and Dalio) not only triggers deeper research by other investors who start to worry they might be left behind; it also removes any career risk for fund managers thinking about suggesting crypto asset investments to their clients and/or bosses,” wrote Noelle Acheson of CoinDesk.
Long-term crypto enthusiasts shook off the crash as many HODLers had been through large Bitcoin dips before.
“Few have made the claim that HODLing Bitcoin was easy, and for many, the volatility seen last week is all part of the ride,” Glassnode stated in its report “Surveying the May 2021 Sell Off.” “What is clear is that the sell-off was of a significant scale, and a large volume of buyers are currently underwater. How the market recovers from here will no doubt be a test of market conviction amidst what continues to be a favorable macro backdrop for digital scarcity.”
Angus de Champion Crespingy voiced a similar opinion to Barron’s. “There aren’t many asset classes where a few $100 billion get wiped off and everyone, everyone goes immediately to Twitter and starts making jokes about it,” said the chief technology officer for C|T Group, “For long-term holders of this, market movements aren’t going to touch them. If it goes up, they’re going to be positive. If it goes down, they want to be positive and show that this means there’s opportunity.”
Analyst Willy Woo observed that it’s not only HODLers who are buying Bitcoin now. “No-coiners are taking this opportunity to buy the dip. In case you’re wondering, the bull market is very much intact,” he observed in a tweet.
“With such high levels of visible fear, max pain & confusion might be a volatile grind upwards. Lots of levels to clear, but the skies are clearing and higher lows are appearing,” tweeted Chris Burniske, partner at placeholdervc.
So is the bull market over for crypto? “This is unlikely to be the end of the bull run,” wrote Philip Gradwell, chief economist at Chainalysis. “Prices are historically high and much more is at stake than in past price declines.”
You can’t talk about being bullish without mentioning the crypto whales that Chainanalysis said bought $2,850,000,000 in Bitcoin last week
“So last week was challenging for everyone in crypto and some investors incurred large losses,” Gradwell wrote. “But the industry appears to be responding and most investors remain confident. For example, investor whales bought the dip, buying 77k bitcoin last week. We will learn much over the next couple of weeks as those who now have unrealized losses but did not panic and crystallize them last week, decide what to do. “
Or as Michael Saylor, CEO of MicroStrategy which is one of the largest institutional investors of Bitcoin tweeted: “It does not matter how slowy you go as long as you do not stop.”
Originally published at https://stex.com on June 1, 2021.