The crypto market is once again in the red, even if Bitcoin’s price has corrected a bit. It was a tough few weeks for crypto investors and holders, with many giving up on their coins. Bitcoin dropped just below $26,000 at one point, although corrections took it to $30,000 once again. 2022 was supposed to be the year of crypto, but with everything else going on in the world right now, worse things are set to follow.
Petrol and fuel prices are going up, inflation is sky-high globally, and even the prices of food are going up. It’s a disaster waiting to happen, and crypto was supposed to be the alternative. With Bitcoin unable to break past the $30,000 wall, things aren’t looking good. However, analysts always say that the devil is in the details, and there’s one detail that gives investors and holders hope that the price may bounce back soon.
Sky-High Number of 1 BTC Holders
That one stat that gives experts hope is the record number of people holding only one Bitcoin. It’s at an all-time high right now, showing that people are still interested in Bitcoin amid fears of further price drops. This detail is the reason why Bitcoin might bounce back from the current levels, although for that to happen, it needs to retain the $30,000 level.
The current market sentiment on the Fear & Greed index is ‘extreme fear’ as expected. Bitcoin continues to consolidate at around $30K, but it hasn’t managed to go past that point. The good news is that it’s not dropping below it for more than a few days. Experts say that the next resistance is at $40,000, a price point that looks far out of reach as of today.
Traditionally, there have been many people welcoming the dip and buying it. Some of them are first-time holders, and that’s why the number of holders with only one Bitcoin has been on the up. Since the beginning of May, the number of addresses holding between 1 and 10 Bitcoins has jumped to 694,000, which is about 50,000 more than before.
Investors Will Need Time to Return
After witnessing last week’s crash that left the market all but dead, investors will need a bit of time to return back to the market. However, they will return – they always do. It’s an inevitable move with many buying the dip when the price goes down, which is the smart move when it comes to Bitcoin and cryptos.
Rising inflation levels, supply chain issues, and sky-high oil and food prices are certainly disturbing the market. Cryptocurrencies shouldn’t have been clearly linked to them, but as we’ve seen for the past year, they move together with other assets.
Still, experts are adamant that investors will come back to the market, even if they need a bit of time. Bitcoin is currently consolidating around $30,000, and things could change overnight. When it inevitably starts going up again, you can bet that people will be there to invest.