The recent volatility within the cryptocurrency markets has led a significant amount of Bitcoin to change hands, with massive selling pressure overwhelming buyers and resulting in a capitulatory decline that led it to drop from highs of $10,500 to lows of $3,800.
This volatility may ultimately be a net-positive for the benchmark cryptocurrency, however, as its absolute scarcity means that the recent selloff resulted in an on-chain shift of BTC from “weak hands” to “strong hands.”
This has led one analyst to note that it is irrational to be highly bearish at the moment, as this simple fundamental shift in BTC ownership should be a catalyst for significant fundamental strength.
Bitcoin volatility catalyzes a massive shift in ownership
It’s no secret that 2020 has been a volatile year for Bitcoin and the aggregated cryptocurrency market, with the largest crypto by market cap rallying from early-January lows in the lower-$6,000 region to highs of $10,500 in mid-February.
The fleeting break into the five-figure price region led to a resurgence of bears that had been hibernating for the first part of the year, with the massive selling pressure incurred here leading to an…
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Author: Cole Petersen