Bitcoin [BTC] accumulation phase has officially started, suggests report by Adamant Capital
Bitcoin [BTC], the largest cryptocurrency by market cap, has been on a roller coaster ride since December 2017. The cryptocurrency space witnessed the coin hit a valuation of around $20,000 and also saw it fall from that point to the $3000 level, crushing the sentiment of several investors in the space.
Nevertheless, the coin has started to show signs of recovery, with a recent surge crossing the $5000 mark. To add on, a recent report by Adamat Capital stated that investors have started to hodl Bitcoin again.
The report read,
“[…] by analyzing Bitcoin’s blockchain we can estimate the monthly position change among long-term Bitcoin holders. Because of the disposition effect [the tendency of investors to hold on to assets that have lost value], Bitcoin investors held on to more accumulated gains than they could afford to lose in the first three quaters of 2018.”
The report stated that the investors’ “net exposure” to Bitcoin increased with the hopes of a market rebound. However, the coin’s plunge below the $6000 mark changed the entire scenario, leading to panic sell, stated the report.
“[…] Shortly after, in early December, Coinbase decided to resuffle its own coins [5% of total supply, possibly amounting for a full 200,000 BTC in HODLer Net Position Change] for technical reasons, which caused red flags in HODL valuation indicators and probably exacebated a general market sell-off.”
Nevertheless, this year has been rolling out in favor of the cryptocurrency as the report suggested that the “situation visibly improved” since the beginning of 2019. It further stated that the accumulation phase of Bitcoin has officially begun.
Source: Adamant Capital
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