State Of Long-Term Bitcoin Holders Amidst Increasing Market volatility

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After a terrible weekend, investors at least got a good start to the week when Bitcoin (BTC) and Ethereum (ETH) temporarily traded at new weekly highs before falling the next day. BTC fluctuated between $18,000 and $19,000 last week, trading below the $20,000 mark. The week began with a bearish candle, but prices unexpectedly rose over the $20k region to set new weekly highs before falling.

Bitcoin’s price behavior still remains undecided because it has been unable to break above or below its present range. The cryptocurrency experienced positive volatility throughout yesterday’s trading session, but today’s gains were again capped as macroeconomic forces regained control of BTC. Large cryptocurrencies have been able to hold onto some of their gains from the previous week, but the majority are still trading in line with market sentiment.

As macroeconomic variables outweigh the overall crypto market, investors are choosing the “HODL” investment approach. In instance, according to data from Glassnode, the amount of Bitcoin held in HODL positions reached a five-year record high on September 29 at 7,509,524.362 BTC, or $341.55 billion.

It is important to note that for long-term investors, holding onto the asset makes sense because selling would result in losses. According to Glassnode data, long-term Bitcoin owners are currently selling the asset for a loss of around 42% in this scenario.

Some investors seem to be seeing Bitcoin as growing more valuable, and any price drops make it an attractive investment. In fact, research indicates that investors are likely to favor Bitcoin given the widespread decline in the value of the pound sterling, as evidenced by the amount of GBP/BTC trade.