Bitcoin (BTC)Cryptocurrency

Bulls are Still Buying Bitcoin Despite Uncertainty in Crypto Market

As soon as the news about the new COVID variant dubbed as Omicron hit the media, the financial markets across the globe went into shock. A round of FUD and panic selling also hit the cryptocurrency market and resulted in a massive Bitcoin sell-off. According to statistics, more than 3 million digital wallet holders experienced losses during this havoc.

As reported by TradingView, more than 10K Bitcoin units were sold amidst the unrest within 24 hours. However, experts claim that the sell-off was quite expected and within the expected limits. The long-term investors have continued to show diamond hands, and HODL is waiting for the first underwhelming week of December to pass.

The crypto market sentiment reader, Santiment, has recently shared that during the first week of December, the Fear and Greed Index has turned orange with 32 points. It is worth noting that the index was in the green for the better part of November, resting at a safe 73 points. CDD or Coin Days Destroyed is an indicator that deals with the long-term holding positions value.

The CDD indicator shared by Glassnode showed that 40 million days were reset to zero during the panic selling. What is worrying is that LTH or Long Term Holders also participated actively in the massive Bitcoin sell-off. However, technical analysts claim that on a macro level, only a small fraction of Bitcoin has been spent.

During the latest market FUD, Institutional investors like MicroStrategy have continued to accumulate more Bitcoins. Meanwhile, Salvadorian president Nayib Bukele has also posted on Twitter about adding 100 Bitcoins to the national reserve. It seems that the current price correction and the small panic period have failed to faze the big players.

On the other hand, technical indicators show that demand for Bitcoin is still high among investors. The amount of Bitcoin sold has mostly been moving around among investors, and a very negligible percentage has ended up back into public circulation or crypto exchange wallets.

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