Bitcoin (BTC) endured one of its biggest sell-offs last week, plunging by nearly 50 percent in one day. However, the hodlers who were burned by the market crash are now coming back, according to Glassnode data.
A 50 percent discount
The firm, which analyses Bitcoin's on-chain data, spotted that its HODLer Net Position Change model, which helps determine when whales are selling or buying BTC, flashed green after the brutal price dump.
This means that long-term hodlers followed one of the main principles of contrarian investing -- buying more when there is blood in the streets.
Recently, CoinMetrics determined that short-term holders who were selling at a loss were the main force behind that black Thursday.
Sitting on the sidelines
As reported by U.Today, fiat-pegged stablecoins thrived off Bitcoin's failure to serve as a safe haven during the coronavirus pandemic. The circulating supply of Tether (USDT) swelled to $5.3 bln.
However, according to Bitcoin Core developer Jimmy Song, all this money will eventually flood back into Bitcoin when investors decide that it's the right time to buy the dip.
As of now, the market is in a wait-and-see mode, trying to catch the bottom of this correction.