On the 4th of Dec 2022, Willy Woo, a Bitcoin analyst, announced that BTC is holding its prices all thanks to long-term hodlers.
If you're wondering why BTC is holding up against so much deleveraging, it's the long term hodlers, the Rick Astleys who aint giving up their BTC, that are absorbing the sells. Buying spot and adding to their stack. pic.twitter.com/eOxmTsN0vk
— Willy Woo (@woonomic) December 4, 2022
Since its fall from grace, Bitcoin has been fighting to get above the $20k price benchmark. And though it is yet to achieve that, it has been maintaining resistance against sell pressure. And long-term holders are still stubbornly holding on. Yet, they are doing more than just holding on. They are adjusting their positions and buying all available BTC, adding to their stockpile.
Unsurprisingly, the price drop attributed to the FTX crash is added to normal market friction. Participants in the crypto market were taken aback by Bitcoin’s recent fall. Nevertheless, Santiment, an analytics firm, clarified that the pioneering cryptocurrency is still fighting for survival amidst intense pressure.
Santiment tweeted on November 21 about the falling BTC/USD exchange rate. The research firm claims that the fear, uncertainty, and doubt currently surrounding central exchanges in the wake of the FTX crisis was to blame for the drop to around $15K. the lowest BTC has been in two years.
🧘 #Bitcoin dropped below $15.8k for the first time in 2 years, and address activity spiked to its highest level in over 6 months. #FUD due to lack of trust in exchanges historically benefits the patient, as we see $BTC continue moving into self custody. https://t.co/lz5FOkIkRX pic.twitter.com/6PKUA29nDE
— Santiment (@santimentfeed) November 21, 2022
But the incident also had a positive result. It may have influenced the recent surge in Bitcoin address activity, which has reached its highest level in six months. Users now understand the saying… Not your keys, not your crypto.
One of these faithful ‘hodlers’ is Cathie Wood. In a recent Peter McCormack’s podcast on October 21 titled “What Bitcoin Did,” the CEO of investment management firm Ark Invest, Cathie Wood, said that she had purchased $100k worth of Bitcoin when it was trading at around $250 and that she had not sold it to date.
If the above assumption is true, BTC assets are shifting from younger, less diamond hands to more experienced ones. And when this transition is completed, Bitcoin will enter a new phase.
Willy Woo is a firm believer in the stock-to-flow model based on the simple belief of demand and supply. BTC would rise in value because of its market scarcity and utility for people looking to shift from the regulated market.
Thus, the holders are reciting the words of Rick Astley. Never gonna give you up, Never gonna let you down, Never gonna run around and desert you.
All speculations point to a bullish rally in BTC’s price, expecting it to hit $17k.