Investors in Bitcoin (BTC) have used a variety of tactics to control the continuous price decline, which has seen the currency fall by roughly 70% from its all-time high established in late 2021.
It’s interesting that the majority of investors seem to have chosen HODL (held, hold on for dear life) the cryptocurrency that acquaintances for over 40% of the total cryptocurrency market.
Considering the current downtrend of the crypto market conditions, 62% of Bitcoin owners have not sold the asset in over a year.
To the contrary of that group, according to TipRanks statistics, 35% of investors sold the asset whiting a month to a year.
Bitcoin’s Selling Pressure Appear to be Coming to a Halt
The discovery underlines the decrease of Bitcoin’s selling pressure among investors.
To further help the argument, Finbold’s report on August 25 showed that the asset’s crypto exchange deposits fell even lower to a two-year low of 1,921 BTC.
External US Government Influence
The major cryptocurrency by market capitalization has taken several hits this last month. Bitcoin saw its price drastically drop on several occasions after the United States Federal Reserve announced new policies aiming to control the nation’s inflation.
When the United States government attempts to control the fluctuation of the country’s inflation by increasing interest rates, external assets that are deemed “riskier” when compared to the U.S. currency tend to suffer a decrease in value.
This influences the price of Bitcoin, alongside all major cryptocurrencies. Other assets like the stock market and other Fiat currencies also tend to devalue with said policies from the Federal Reserve.
As the U.S. government issues new policies to control inflation, the value of Bitcoin dropped by 37%. Similar to this, since the year’s beginning, similarly the S&P 500 has decreased by around 17%.
Bitcoin’s Current State
August has not been kind to the world’s largest cryptocurrency. After the first Fed Minutes report on August 18th, the cryptocurrency saw a near 16% devalue plunging from around $23,000 to today where BTC is constantly dipping its feet below the $20,000 margin.
Generally, United States interest rates will likely continue to rise in 2022. The question now becomes, just how high will they go?
