Hodlers see an opportunity in the Bitcoin price crash, says CoinShares CEO

Bitcoin’s (BTC) downtrend after its all-time high in April could be worrying for first-time investors. However, crypto strategist Meltem Demirors believes most longtime owners aren’t selling, and this is a correction to weed out panic sellers.

Speaking to CNBC, CoinShares’ Chief Strategy Officer emphasized that Bitcoin will stay here and that after 200 days of expansion in the crypto market, a price decline is normal. “A number can’t go up forever,” she added, making it clear:

“What we see is a correction, a contraction, and a lot of that shaky thing we call paper hands, weak hands.”

“Paper hand” is a common market term to describe an investor who cannot tolerate high financial risk and who starts selling as soon as asset prices start to fall. It is the opposite of “hand diamond” which simply means that the holder is under pressure.

Recalling that excluding Bitcoin, the crypto market was up 200% year over year, Demirors said Bitcoin has always been a volatile asset class. “I’m not going anywhere even if we go for $ 20,000. Last March we were at $ 3,000 for bitcoin, “she said, adding that” we need to take the context into account. “

She says many retail investors who don’t do their research are selling while long-term owners keep waiting. “When we look at activity in the chain, wallets that have been around for a long time are taking this opportunity to pile up,” she added.

Glassnode data confirms Demirors score. According to his data, Bitcoin addresses that do not sell the coins they have accumulated have increased their holdings since the all-time high in April.

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Demirors said it expected consolidation at current price levels with macro uncertainty. “The political uncertainty is great. There are also a lot of negative headlines, ”she explains.

Meanwhile, Bitcoin is headed for its worst quarter since its downtrend began in 2018, according to crypto data aggregator Skew. The data shows that Bitcoin is down nearly 46% in the quarter that’s been the weakest quarter since Q1 2018.