Bitcoin has recorded lows and highs throughout this week and settled for $45,930 before falling again. It has been giving a mixed bullish to the crypto market. But bitcoin enthusiasts are hopeful that the world’s most popular cryptocurrency will come out of the slums as 2021 winds up. Analysts are vying for broader market support for bitcoin to rise yet again.
Now, there is somewhat of a link between the short-term bitcoin holders (STH) ratio to long-term bitcoin holders (LTH). The STH’s can be regarded as new participants in the market. An expert commentary highlighted that the STH: LTH price ratio is on the increase. This means the cost basis of short-term holders is relative to long-term holders. It says with the marginal seller exhausted, the bitcoin price rises. And this results in long-term holders staying stagnant. This sees an increase in new investors, that is STHs, causing explosive bull markets. But then there are not enough coins for everyone.
Moreover, the year has been fueled by uncertainties due to the ongoing COVID-19 pandemic and calls for regulation of the cryptocurrency market. And central banks trying to tackle rising inflation disrupted supply chains and COVID vaccination drive. But the crypto market has been pushing forward positively.
Bitcoin fell to new lows but also rose to new highs. Despite Bitcoin’s volatility taking a toll on Ethereum too, Ether did well. Stablecoins found a market in new young investors and 2021 is definitely the year of Nft.