• Bitcoin has experienced a bearish period due to the market dropping 70 percent by the end of 2022.
• As much as $370 billion in bitcoin has remained dormant over the past six months.
• Analysts believe that traders are looking for long-term gains, instead of quick profits.
Bitcoin Experiences Bear Market
Much of the world’s bitcoin units have been „dormant“ over the past six months after experiencing a bearish period in which it dropped more than 70 percent from its all-time high of about $68,000 per unit. This is despite a recent surge back up to $25K, bringing with it bullish trends that could see it rise even higher by year’s end.
$370 Billion in Bitcoin Remains Dormant
As much as $370 billion worth of bitcoin has remained still and unmoved during this time frame, leading some analysts to believe that investors are seeking out long-term gains rather than quick profits. This could be why trades have been limited over this period and could continue until investors feel confident enough to jump back into the market.
Crypto Space Sheds $2 Trillion in Value
The crypto space was dealt a heavy blow with many altcoins like Ethereum taking on new form and losing tons of value due to the bear conditions that followed bitcoin’s 12-month downward spiral. By the end of 2022, over $2 trillion had been lost from these currencies alone – leaving many feeling uncertain about their investments going forward.
Analysts Believe Investors Focus on Long-Term Gains
Miguel Morel – CEO of Arkham Intelligence – explains that this limited trading activity may be because investors are looking for longer-term gains rather than quick profits, something they may not have had an opportunity to do last year when markets were so volatile. He believes this will help them gain confidence before they dive back into trading activities again.
Bitcoin Could Reach New Highs by Year End
The good news is that 2023 has seen bitcoin rise nearly 50 percent since last year’s lows, giving traders hope that if these bullish trends continue we could see it reach new heights closer to 2021’s all-time highs by year end or sooner.
