It looks like the amount of bitcoin being held on digital exchanges is beginning to fall to record lows. The world’s number one cryptocurrency by market cap has shot past the $19,000 mark again, and it appears people are beginning to sell. Thus far, the amount of bitcoin held on exchanges has fallen by more than 20 percent this year.
Bitcoin Is Being Sold Off
The currency, despite doing well at the time of writing, has encountered a few ups and downs in the last few weeks, experiencing a couple of solid drops that ultimately caused the asset to lose about $1,000 here and there from its respective price. It could be that people are beginning to sell now that bitcoin is once again past $19K because they fear another drop is coming.
The $20K range has proven elusive for bitcoin. While many analysts are still believing that the year will end on this note, the currency has yet to show the strength necessary for reaching that mark. Thus, each time bitcoin surges past $19K, it experiences a fall a week or so later. This has been happening since the beginning of the month, and people may be looking to avoid another dip.
However, this could be the wrong attitude to have. For one thing, selling massive amounts of bitcoin is likely to affect the entire market as we’ve seen in the past. The world’s primary digital asset holds a lot of sway in the crypto world – so much so that often when large amounts of BTC are sold through exchanges, the entire market experiences a heavy crash of sorts. It’s not just bitcoin that falls. Usually, smaller competing altcoins such as Ethereum will typically follow suit.
If traders are worried about seeing bitcoin fall once again, they should probably be thinking about holding onto their bitcoins rather than selling them. Alas, it is the typical opposite of what many enthusiasts do during times of strife.
Is This the Right Angle?
In addition, this may also be the wrong move considering how short the other dips have lasted. Typically, just a few days at most. What we’re likely seeing whenever bitcoin loses $1,000 or so is the currency experiencing a small correction given that it hasn’t been this high in a long time. We need to remember that the last time bitcoin saw prices like this it was the year 2017. Thus, it’s going to take a certain period for the currency to get used to being this bullish again.
Naturally, we’ve seen a few small corrections here and there, but they haven’t lasted, and bitcoin almost immediately returns to form each time, thereby showing us how strong and resilient – and above all, mature – the currency has become from three years ago, so perhaps it can be argued that selling isn’t the right step.