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On-chain analytics platform IntoTheBlock notes a familiar trend that is typical with Bitcoin in most bear markets—investors with long-term horizons grow their holdings during bear markets.
According to a chart provided with the tweet, the percentage of Bitcoin owned by addresses that held for one year or longer has increased in prior bear markets, and this tendency appears to be repeating itself.
Hodlers Double Down - investors with long-term horizons grow their holdings during bear markets
— IntoTheBlock (@intotheblock) June 3, 2022
- The percentage of $BTC owned by addresses holding one year or longer (green to blue colors) has expanded in previous bear markets
- So far we're repeating this same pattern pic.twitter.com/nP88gGObb7
According to the IntoTheBlock's holders' composition by time held, 61% of Bitcoin holders have held onto their coins for more than a year, 33% have held on for a year and 7% have held onto their coins for less than a month. The greater chunk of Bitcoin holders being medium- and long-term holders might suggest that Bitcoin may have been seeing buying pressure from this class.
Bitcoin and cryptocurrency price action
Bitcoin's latest climb to $32,375 on May 31 was fleeting, as the value plummeted below $30,000 in the first few days of June. The majority of altcoins followed BTC on its ascent. Most are currently in the red, losing value.
At the time of publication, Bitcoin, the largest crypto by market capitalization, was trading at $29,659, a nearly 1% drop over the previous 24 hours. Ether was changing hands at $1,752, down 3.11% within the same period. Most other major cryptos are tumbling down with Ethereum, recording losses of between 3% and 8%. Investors continued to avoid riskier assets, leading to choppy trading conditions owing to increasing inflationary and recessionary fears since the start of this year. A few assets, like Stellar (XLM) and Bitcoin SV (BSV), however, were slightly higher, trading in the green.
Bitcoin dominance, which refers to Bitcoin's market share on the overall cryptocurrency market, rose slightly to 46.3%, while that of Ethereum was 17.5%. The crypto market capitalization had declined slightly by 1.90% to a record $1.22 trillion at press time.
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