Bitcoin’s price has crumbled to $31,935 at the time of writing after sustaining a weekly loss of nearly 14%. Despite the growing bearish cloud over the crypto-asset’s price, all hope’s not lost.
This was according to the latest report by the blockchain intelligence platform, Glassnode which stated that Bitcoin has more room for further growth.
Bitcoin Investors Unwilling to Sell at a Profit
According to Glassnode, Bitcoin’s aSOPR [Adjusted SOPR] has reset after maintaining a steady upward slope for the past several months. Despite having a rather tumultuous week, this metric indicated that coins moving between investors per hour [24h MA] are, on average, no longer being sold at a profit.
It further stated,
“In order for SOPR to go lower, investors would have to be willing to sell at a loss, which is unlikely given the current shape of the market.”
This comes after the aSOPR took a sharp fall last week which preceded subsequent market correction in the price of the crypto-asset. Typically, SOPR swings near 1. During the bull run, the aSOPR rushed above 1.15 before plunging to levels last seen in September 2020.
As the metric reset and bounced back from 1, the above chart suggested that the current downward trend could possibly diminish in the near future.
Furthermore, 12.6% of the BTC supply which totals 2.3 million BTC was moved above $30,000. Glassnode stated,
“This is substantial, given that $BTC crossed $30k just this year. It suggests investors are injecting capital, and therefore confidence in further price appreciation.”
Whales Playing the Long Game
Bitcoin’s declines have had no effect on the whales. This was evidenced as the number of large volume holders of the crypto-asset with 1,000 or more coins, saw a consistent uptrend. Nearly 190 new whales have been created since the start of the year.
Notably, the recent drop in the coin’s price has further bolstered the metric. On further breaking down the quick successions in which the whales were scooping up the coins, it was found that the figures for Bitcoin whales had jumped in substantially after the market suffered a loss on the 10th of January this year.
More recently, Microstrategy announced accumulating after the drop on the 22nd of January. The Nasdaq-listed multibillion-dollar company revealed that it had purchased 314 more bitcoins for $10 million in cash.