The CEO of Three Arrow capital, Zhu Su, has shared his view on the current behavioral pattern of Bitcoin holders and compared it to the previous cycle in 2018.
As the on-chain data reports, the majority of large Bitcoin investors that have been holding the cryptocurrency for more than one year prefer holding and accumulating additional coins despite the strong correction on the market.
One reason onchain data is showing impressive holding behavior is bc many ppl actually did buy $BTC in 2017/2018 only to sell for a loss after losing patience. Anecdotally many of these ppl are staying humble this time and buying every month regardless of what else is happening.— Zhu Su ? (@zhusu) February 21, 2022
Su Zhu explains the shift in the behavior of investors with the unpleasant experience that some traders possibly went through due to selling the cryptocurrency prematurely between 2018 and 2019, when it was trading at the bottom.
After "crypto winter" and the total absence of trading volume and buying power, the crypto market entered a recovery phase in 2020 that lasted until November 2021. The rally resulted in almost 600% growth for Bitcoin and other cryptocurrencies like Ethereum, Shiba Inu and Cardano.
The largest Bitcoin holders are not following the trend
But with the analyst's call on the change of sentiment among investors, Bitcoin whales do not seem to follow a pattern here, with their number dropping from 2,500 to 2,100 since January 2021.
The most recent correction wiped off the market approximately 100 whale-tier wallets that held more than 1,000 BTC previously. Some users have also assumed that whales are just redistributing their funds between smaller wallets.
At press time, Bitcoin is trading at $37,726 and facing another wave of selling pressure as the U.S. pre-market shows weakness once again. Altcoins are also experiencing bearish tendencies on the market, with the majority of tokens and coins losing from 1 to 3% of their value.