BTC HODLers (Over 1 Year) Climb to An All-Time High During Market Turmoil Ahead of The Halving
The world's leading cryptocurrency is back to showing some movement as we make our way back above $7,000, going to $7,143.
While BTC is still down 3.76% YTD, altcoins like Kyber Network (163%), Hedera Hashgraph (138%), DigixDAO (98%), BSV (97%), and Chainlink (95%) are yet reporting substantial gains.
Interestingly, $912 million worth of Tether (USDT) is currently being exchanged on top ten exchanges with real volume in the past 24 hours compared to Bitcoin’s $883 million, as per Messari.
Today’s gains, however, have been yet again alongside stocks just as oil prices started rebounding.
After about a 5% drop earlier in the week, Dow and the S&P 500 rose 1.9% on Wednesday. The selling has been triggered by a collapse in oil prices which dipped below zero for the first time. Today, some stability returned to the market with the price of international benchmark Brent crude and the American benchmark West Texas Intermediate crude sharply higher.
US Treasury bond prices meanwhile fell signaling that investors are yet again turning back to riskier investments. Moreover, the US Senate has passed a bipartisan $484 billion coronavirus relief package for distressed small businesses.
As for Wednesday’s first-quarter earnings report, Delta Air Lines had its first quarterly loss in years. Netflix’s shares fell after hitting a record high last week over increased demand anticipation which was met with countries in lockdown.
Bitcoin must remain above $6,200/$7,000 zone
Bitcoin that has a market cap of $130 billion, the same as Tesla along with other digital assets remained somewhat isolated from the latest market crash led by oil.
While the leading digital asset is keeping steady, it didn’t reclaim the key upside levels either all the while the hash rate of the network is back near all-time highs with mining difficulty making a big positive adjustment.
“The market may have been unable to stage the much sought-after rally, but it also remained somewhat resilient and prone to unexpected swings,” noted Denis Vinokourov, head of research at crypto investment brokerage, Bequant.
According to him, the market needs to remain above the $6,200/$7,000 zone because “below that the next support is not seen all the way to the low $5,000 zone.”
But in the current market turmoil, everything is possible, with everything from interest rates, oil futures, to yield going inverted amidst QE, surging employment, and massive bailouts. In such an event, Gabor Gurbacs of VanEck said, bitcoin “seems to make more sense than most markets.”
Bitcoin halving is also now less than 20 days away that will cut down its inflation in half. Price-wise, we can still go lower as trader Crypto Michael said,
“Funny, equity markets go up, BTC go up. The push even came slightly before equity markets opened.
In interesting resistance areas here. Weekly open + yearly level above us. Reclaiming them and I'be interested for longs, but overall expecting retest $6,900.”
We won’t go below $6.5k before the halving.
— f i l ₿ f i l ₿ (@filbfilb) April 22, 2020
Meanwhile, before this big event, the number of addresses holding BTC for more than a year is currently at their all-time high.
“On April 21, 18.99 million addresses were holding 10.83 million BTC for over a year. This number is 25% higher than the same date last year,” noted IntoTheBlock.