Surprisingly, Bitcoin has surpassed the $7,500 psychological level as on-chain analysis shows that retail Bitcoin investors are purchasing huge sums of Bitcoin daily.
The famous “Black Thursday” event that unfolded on March 12, 2020, saw Bitcoin lose so much value at a twinkle of an eye. In the space of hours, the value of Bitcoin had drastically dropped. Reports hold that Bitcoin dropped from $8,000 to $3,800 on Black Thursday.
Since the time that this sad event occurred, Bitcoin has barely returned to similar levels of value. Also, Bitcoin has been struggling to find a stable price range during the ongoing world pandemic, Corona Virus.
However, just of recent, Bitcoin saw a glimpse of hope as the top cryptocurrency recorded a 7% increase, surpassing the $7,500 psychological level. Note that data from analyst might provide more hope as more retail investors stack bitcoin ahead of the halving.
Long Term Investors Are Adding $500M Worth Of Bitcoin Daily
Following the data from on-chain market analysis hub, Glassnode, long-term investors are rapidly adding up on their Bitcoin stock. In a tweet, Glassnode pointed to the fact that the net position change of HODLers is reaching yearly highs. The tweet from Glassnode reads: “Long term investors are increasing their positions – and they’re accumulating more $BTC each day,”
The same research also reveals that long term Bitcoin investors are adding at least 75,000 Bitcoin to their positions on a daily basis.
At the current price of $7,500 per Bitcoin, 75,000 of Bitcoin will amount to $562.5 million. Although there might be no particular reason attached to this strategy by investors, it seems the fear of missing out (FOMO) is kicking in the right before the halving.
FOMO is a physiological mechanism that causes traders to buy large sums of an asset due to concern that they may miss out an upcoming profit. This situation usually leads to an increase in the asset’s price as several traders troop to exchanges to make a purchase before a major event. In the case of Bitcoin, this event is referred to as the Bitcoin halving. Amateur traders and hobby investors are also rapidly adding more Bitcoin to their portfolio.
Of recent, data from UsefulTullips reveals that on the African continent, there is an increase in trading volume on P2P platforms. Paxful reveals that Nigeria has observed an increase in trading volume to $3.9 million compared to 3.2 million in the last two weeks. Kenya and Ghana have also recorded significant jumps in Bitcoin price. Behold, if this trend continues, it may have a positive impact on the Bitcoin price after the halving as the price of Bitcoin drops and demand increases. However, it will be interesting to see how the market looks like in the coming weeks.