Is This Bitcoin Bear Market Different from Those Before?
MEXC Research: How Is This Bear Market Different from Those Before?
Investors typically use long-term averages such as EMA120 or 200 as the bull-bear dividing line. As of 15:30 June 21, EMA120 was priced at $43794.8 USD, and EMA200 was priced at $40661.18 USD. Both prices are higher than the current price.
The general view now is that we are in a bear market.
Small Holders Sell and Whales Buy At Low Prices
According to Santiment’s data, as of June 12, addresses with over 1,000 BTC are continuing to buy; the number of addresses that are holding 10–1000 BTC remains stable; addresses holding less than 10 BTC addresses are selling.
Glassnode’s data shows that there are at least 1.985 million BTCs (approximately 10.5% of the total BTC supply currently), with capital costs ranging from $31700 USD to $39200 USD, of which 63% are BTCs owned by long-term holders purchased in January 2021 while 37% were recently purchased.
Actual Liquid BTC Reduces and Addresses Choosing To Hold Increases
According to Glassnode’s data, although BTC has been mined continuously since its inception, the number of illiquid BTCs held has increased to 78% of the current total circulation, and it’s still rising.
Regulation of BTC Derivatives，Allocation of Capital by Institutions
At present, institutions in the United States, Canada, and other European countries have launched BTC-related derivatives. In addition to Grayscale Investment that people in the circle are already familiar with, there are also other funds as shown in the figure below.
In addition, in August 2020, the US asset management giant, Fidelity Investments, raised more BTC funds from customers with permission from the US regulatory authority SEC. As of May 27, 2021, more than $100 million has been raised.
In March, Morgan Stanley launched three BTC fund investment channels to clients, two from Galaxy Digital, and one from the asset management company, FS Investments, and the Bitcoin company, NYDIG.
In addition to these institutions, some listed companies use cash to purchase and hold BTCs with the permission of the board. The most well-known of which is Tesla, and MicroStrategy (NASDAQ: MSTR), which has purchased more than 100,000 BTCs. Listed companies such as Galaxy Digital (TSE:GLXY), Square (NADQ:SQ), and Marathon Patent Group (NASDAQ: MARA), Nexon (TYO:3659) also publicly hold BTC.