Updated on January 9, 2023 12:51 PM
The bear market has lasted for too long now. When will it end? Well, no one can really answer that question. The fluctuation in the price of the largest cryptocurrency by market cap - Bitcoin, affects the entire crypto market. The uptrend or downtrend in the price of Bitcoin ultimately affects other altcoins.
The state, officials, and governments around the world are trying their best to put an end to cryptocurrency mining. Due to this, the mining industry has taken a severe hit. The difficulties in mining are increasing. And likewise, the income of the miners is falling. But some indications reveal that, despite the fall and worsening market conditions, the value of Bitcoin eventually increases with time. This suggests the recent decline is not a collapse.
The data from Santiment indicates that the Mean Dollar Investment Age(MDIA) metric has reached a new high. The metric crossed 66, the highest it ever went in years. And this indicates one outcome - a delay in coin distribution for a while. A look at the historical data of all the bear and bull markets has proved the MDIA index to be a reliable metric.
A look at the history reveals how the MDIA metric reaches extreme levels during the accumulation years(like 2017). Some experts suggest the significant declines in MDIA relate to pricing decline. As a result, all the Bitcoins purchased at a high price are now being returned to exchanges.
As per the BTC supply distribution statistics data, compared to January, there are more holders of 1000-10000 Bitcoin in October. The data further shows that over 13,000 holders consistently held between 100 to 1,000 Bitcoin.
There is no denying that Bitcoin is down over 73% in the past year. And this arises one question, is Bitcoin Dead? During November 2021, the price of Bitcoin fell by 72%. And this indicated a further decline. The trend line functioned as resistance, as tested a few times.
In April 2021, Bitcoin rose from $9,000 to the $56,000, a 900% growth in its value. But what is the significance? The emphasis explains how, historically, when the percentage increases by 1,000%, the decline can not be more than 100%. This is what history tells us. Bitcoin can decline further, or it may not.
Some indications and alterations suggest Bitcoin has been holding to its price nicely. The next bull run could be when the global economic conditions improve and enhancements are seen in the crypto space.