Bitcoin (BTC) dropped to lows of $42K, a move that stunned and shocked the crypto space over the weekend!
Market analyst Holger Zschaepitz stated:
“Bitcoin drops >20% in another sign of global market nerves. This largest digital token fell as low as $42K before paring some of the drops.”
The bitcoin space endured complete liquidations to the tune of $2.2 billion in a span of twelve hours while dropping to the lows of $42K. Further, the open interest dropped by 25% at the time of writing.
Moskovski further added that the uncertainty was set off by the variant Omicron strain and cash-strapped market-triggered chain liquidations.
On the contrary, this decline in prices launched the largest buy the dip interest in 3 months. In the meantime, investors keeping less than 1 BTC own 5.1% of the overall Bitcoin supply. Further, in August, the supply kept by the long-lasting BTC holders stood at 66% at the time of writing.
In addition, holding continuously becomes a preferred strategy in the space of crypto. Considering that BTC investments are made for the intended purposes other than supposition. As a result, coins are kept in digital wallets and cold storage away from the crypto exchanges.
Further, holding is based on the law of economics pertaining to demand and supply. Because it frequently creates a supply shortage in the market. That’s why higher demand and lower supply usually provoke an increase in price.
At the same time, seller exhaustion is showing similar traits to those of July and October bottoms.
