Market data analysis platform IntoTheBlock shared remarkable data on the Bitcoin bear market in a new report published on its official website. The crypto analytics firm says the overall macro environment is still uncertain, although the on-chain data hints at the bottom of the Bitcoin bear market.
IntoTheBlock found that the number of long-term Bitcoin holders (investors who have been holding BTC for at least a year) is increasing in 2022. And the report highlights that this class of investors has created an important level of support by buying during Bitcoin bear markets.
“Hodlers backing from the bottom – long-term Bitcoin holders have historically leveraged bear markets to buy Bitcoin. In 2022, we saw the amount of Bitcoin held by addresses that have been hodling for over a year increase 50% from 10 million BTC to 15 million BTC. “The same pattern was observed in previous bear markets. The Hodler balance only drops after new highs are recorded.”
Further, the report reveals that half of Bitcoin holders are currently at a loss, as well as when Bitcoin bottomed out in bear markets the last few times.
“Previous bear markets have bottomed out after reaching a point where 50% or more of BTC holders lost money on their positions, classified as ‘no money’ by IntoTheBlock.”
According to IntoTheBlock, stocks and cryptocurrencies – specifically BTC – started to correlate again after the FTX crash. However, the platform notes that while current conditions are similar to past bear market conditions, it is difficult to pinpoint what is on the horizon for Bitcoin.
“Macrocorrelations are back – after diverging during the FTX crash, crypto and stocks are moving together again. The correlation coefficient between the Nasdaq and Bitcoin has now risen to 0.86. And it shows that there is a very strong statistical relationship between the two… “On-chain metrics from the markets follow previous bottom patterns. However, the increasing correlation of these macro factors still creates uncertainty as to whether the recent price action was the start of a bull market or just a bull trap.”