Meltem Demirors believes the current drop in the price of Bitcoin is a correction.
Bitcoin’s (BTC) downtrend after its all-time high in April could be worrying for first-time investors. However, Meltem Demirors, CoinShares chief strategy officer, believes most long-time owners aren’t selling, and this is a correction to weed out panic sellers.
Speaking to CNBC, Demirors emphasized that Bitcoin will stay here and that after 200 days of the crypto market “flourishing”, a price decline is normal.
“A number cannot go up forever. What we see is adjustment, 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 “diamond” which simply means a pressure holding element.
Demirors recalled that excluding bitcoin, the cryptocurrency market was up 200% year-over-year and said that 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, we need to be aware of the context. “
She says many retail investors who don’t do their research are selling while long-term owners keep waiting.
“If we look at the activity in the chain, wallets that have been held for a long time take advantage of this opportunity to pile up.”
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.
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. “
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.
Synthetic
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