Long-term BTC investors have been stocking up on sats, despite the steep drop in crypto prices over the past week. Bitcoin endured a brutal sell-off that saw it lose at least 35% from the $8,000 level that had been holding strong.
Recession fears spurred by coronavirus concerns seemingly drove short-term investors to panic mode as they sold their BTC, but long-term investors took it as an opportunity to accumulate discounted BTC.
Long-Term Investors Are Bullish As Hell
Bitcoin has been on a steady decline over the past week or so. On Thursday, March 12 and Friday, Mar 13 specifically, the flagship cryptocurrency plunged by circa 50% in a death spiral alongside the stock markets. This unprecedented drop even led to veteran trader Peter Brandt stating that he had placed all his bets on bitcoin dropping to $0.
The bitcoin market crash coincided with a sell-off in the stock markets on coronavirus fears. The stock market collapse has made a global recession likely, triggered by COVID-19. As we speak, the number of coronavirus cases around the world has topped 200,000 for the very first time. Although quite a number of people have fully recovered so far, this figure is quite alarming.
Nonetheless, on-chain analytics firm Glassnode recently pointed out that even with the recent market correction, HODLer net position change has remained positive. This simply implies that long-term investors remain bullish amid the weak market performance as they slowly increase their positions.
“$50,000 Relatively Quickly Is Possible If BTC Holds These Levels”
One of the long-term BTC investors that are still ultra bullish on the top crypto despite the recent painful dump is the CEO of hedge fund Three Arrows Capital, Su Zhu. According to Zhu, multiple emerging markets are at risk of experiencing sovereign defaults.
He also noted that the United States dollar is well on the path to inflation, which will be difficult to reverse later. This is presumably due to the Fed’s recent move to inject trillions in liquidity into the markets.
A convergence of these factors sets the stage for bitcoin’s parabolic move to $50,000 “relatively quickly” if the crypto-asset can hold its present levels.
In a follow-up tweet, Zhu quipped that most emerging markets will soon have their economies flooded with money while bitcoin’s scarcity remains unquestionable.
“Whether you believe Bitcoin scarcity is socially enforced or absolute, in many emerging markets it will no longer be possible to even audit the money supply.”