Bitcoin is back below $47k right around press time. The largest digital currency by market capitalization has been on the downturn for quite a while now, dropping more than 31% from its new all time high of $69k in a matter of weeks. However, new data shows that the current bearish trend has been a jackpot for buyers and they are now looking to buy BTC in droves. This buying spree is one of the highest seen in multiple years, resulting in some big BTC gains for users.
The March 2020 crash was one of the biggest price drops in the history of the digital currency. Bitcoin dropped to as low as $3.6k at that time and many seasoned investors bet a lot on it and snapped up the crypto for cheap. Now, it appears that the recent decrease in prices is the biggest retail purchase ever since March 2020. This is a big deal considering Bitcoin is by no means a cheap buy at the moment compared to that episode because the cryptocurrency is worth $47k now and back then it was a paltry $3.6k at its lowest point.
According to popular crypto trading commentator Willy Woo:
The last time retail bought the dip this hard was at the bottom of the COVID crash.
Probably nothing, few, etc etc. pic.twitter.com/HuxNxYMl48
— Willy Woo (@woonomic) December 14, 2021
Retail investors are generally small investors with less than 1 BTC in their wallets. They are generally looking for a big opportunity to buy because they have limited funds. It is interesting to see that they see the current price levels as a lucrative price level and are stacking their wallets with BTC.
According to another interesting bit of data from Glassnode, long-term holders of Bitcoin are now at record highs while short-term holders are at relative lows. This is despite record numbers of new investors entering the scene since the start of the current bull run. In all likelihood, this shows that the current 31% or so drop from the all time high level of $69k has flushed out the speculators from the market and many of them have now moved their money out to cut some losses. The long-term investors are the ones that always reap the most benefit as they are unfazed by giant drop in the price index and use it as an opportunity to stack more.
Image Source: pixabay.com
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