When Bitcoin prices dropped to a 2 year low due to FTX filing for Chapter 11 bankruptcy, long term holders of the cryptocurrency stood strong.
The most recent Digital asset crash was led by Sam Bankman-Fried, and has been termed as the most damaging event in crypto history. With FTX’s collapse, many other contagions spread throughout the industry, causing several lending platforms and exchanges to feel the heat. However, a report suggests that Bitcoin long term holders stood together during this difficult time.
According to a report by ARK Invest, despite increased volatility in the crypto market due FTX collapse, the supply held by Bitcoin long term holders remained unchanged for November. Meanwhile, net outflows from crypto exchanges reached an all-time high (ATH).
The data shows that Bitcoin’s price fell more than 16% in November. The price was below the investor cost basis of $17,860 but closed at $17,100.
Even though the Bitcoin price dropped to a 2-year low when FTX filed for bankruptcy, long-term holders of Bitcoin remained firm. The report mentions that the total supply of long-term holders stabilized at 13.8 million Bitcoins – which is very close to its all time high record.
Cathie Wood, CEO of ARK Invest, mentioned that the Bitcoin blockchain ran smoothly throughout the crisis. She added that SBF didn’t appreciate Bitcoin because it’s transparent and decentralized–two qualities that prevent SBF from having power over it.
According to the report, Bitcoin miners were feeling unenthused due to shrunken profit margins. This caused the hash rate- which is a measure of how fast a computer can compute an algorithm needed to solve a transaction block- to decline. The all time low (ATL) for the crucial ratio between BTC realized profits and losses was reached; this marks capitulation( giving up).
Although it is currently trading at an average price of $17,178, Bitcoin has risen by 0.18% over the past 24 hours. With a market capitalization of around $330.3 billion and a 24 hour volume of $12.8 billion, BTC stands as one of the most popular cryptocurrencies on the market today.