Bitcoin investors are a very interesting group of people. Their behavior has no strict pattern, no orderly response. In a way, they complement the crypto space. This time around, they are not behaving as the market would expect them to, and have instead resorted to … doing nothing. But why?
Why are Bitcoin investors doing nothing?
Bitcoin investors haven’t moved their holdings much. One reason for this could be the slow growth of BTC, which had this halving. Since the crash in May, BTC’s growth has not been as good compared to growth since the second halving. At the moment, BTC is still 5x behind where it could have been. Understandably, this may have made investors feel depressed.
In addition, a solid and profitable market usually observes accumulation or profit-taking. However, this time around, investors haven’t resorted to either.
Stock market balances show that the accumulated balance has dropped to around 2.4 million BTC, the lowest level since August 2018. However, this already happened on September 17th.
Since then, the indicator has been and remains flat. This means that accumulation has been idle for almost a month.
It’s not the best, but it’s not the worst either. Although the accumulation has slowed down, the lack of an increase in balance means that sales have not increased either.
In addition, the liveliness indicator is at its lowest level since February of this year. The lower the vibrancy, the higher the number of bitcoins generated and less the older coins destroyed.
This could be the trigger needed to restart the accumulation drive.
At the moment, Bitcoin continues its rise in the charts. Since the beginning of the month, BTC is up nearly 26% and has even caught up below $ 55,000 today, trading at $ 55,284. This could create the upward movement necessary to get what is needed.
In addition, in less than a week, the Fear and Greed index switched from “extreme fear” to “extreme greed” and that is a good indication of investor sentiment.
Investors should also remember that the king coin isn’t the only cryptocurrency in terms of slow growth. Ethereum, too, along with the rest of the market underneath, is lurking where it should have been. So it may take some time for expectations to be met, but investors can rest assured that nothing bad will happen either.