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This week has been quite depressive for the whole crypto community with Bitcoin and Ethereum losing significant positions within just a week after the merge. While Bitcoin held better than ETH, it still lost a lot and forced many token holders to take a deep breath and start thinking about what they should do with their coins.
HODL seems to be the way chosen by many
We recently reported that over 62% of all bitcoin addresses do not have any outgoing transactions meaning that they are not planning to sell at all. At the same time, the current situation in the global economy is not favorable for people who want to make a quick buck reducing the liquidity and forcing the market to contract as prices continuing going down at an alarming pace. Although the crypto industry held better than the US economy in general, BTC still lost some of its positions.
Since the crypto winter began in May of 2022, the number of addresses that were sending Bitcoin to exchanges has been consistently falling and hit a 22-month low on September 22 with the number of wallets sending anything to crypto being just above 4,440 which is nearly 40% compared to the high number of sellers registered in July 2022.
Some analysts are quite puzzled by what is happening in the crypto world right now with BTC miners increasing the heat of the race for hash rate and many BTC holders refusing to sell amidst the crypto winter that should have shaken the faith of many in the future of crypto. The supply of the coin continues to grow at a normal pace and moderate selling is still affecting the price negatively, but the general vibe is cooler than a month before.
Should we celebrate or panic?
The current situation is uncertain with BTC trading below the $19K mark and analysts not knowing how to interpret data from both miners and wallet holders. What we can say firmly is that recovery is not even close and all crypto assets will be contracting until the end of the year.