CoinShares chief strategy officer Meltem Demirors believes that most long-term holders are not selling their BTC despite the Bitcoin price drop that the market experienced recently. Consider this a fix to eliminate sellers out of panic.

Speaking to CNBC, Demirors stressed that Bitcoin is here to stay and that, after 200 days of expansion of the cryptocurrency market, it is normal for the price to drop. «You can’t have a number that goes up forever.», add

«What we’re seeing is a correction, a contraction, and a lot of what’s shaking is what we call paper hands, weak hands».

“Weak hands” is a popular market term to describe an investor who cannot bear high financial risk. And, it starts selling as soon as the price of the asset starts to fall. It is the opposite of “diamond hands”, which simply means an investor holds his position despite being at a loss.

An opportunity with Bitcoin, only for the eyes that can see it

The chief strategy officer of digital asset investment firm CoinShares, pointed to the activity of transactions on the Bitcoin blockchain to support her opinion.

«There are a lot of retailers who came in, didn’t investigate and are now selling. There aren’t many long-term forks selling. If we look at the activity in the chain, portfolios that have been held for a long time have actually been taking advantage of this opportunity to accumulate».

Demirors comments on CNBC follow a wild ride for Bitcoin on Tuesday, which began with a sharp drop below the key support level of $ 30,000 before recovering into positive territory in the afternoon. Analysts had been watching the $ 30,000 level after the cryptocurrency experienced a series of losses in May.

Bitcoin price at bottom limit?

For their part, there are those who think that, the price of Bitcoin is “very close to the bottom”. And, it still has a long-term bullish view. According to institutional cryptocurrency company Stack Funds.

In his latest report, released on June 23, analyst Lennard Neo claims that, despite falling prices, there is no reason to be bearish on BTC.

The report came the day after it was reported that the price of Bitcoin plunged below $ 30,000 for the first time in six months. However, it soon rebounded to current levels above $ 34,000.

The volatility came thanks to a mining shake-up that will reportedly cause hashing power to be transferred en masse from China to other countries.

«Bitcoin also closed down, falling 28% after failing to beat the $42,000 mark late last week. Since then, the digital asset has regained some ground. After a brief drop in prices yesterday and is currently trading around $34,000Stack summed up.

«Our macro vision remains the same as we expect Bitcoin to set the ground for further consolidation».

Neo highlighted an important date looming in the short term: the expiration of the second quarter options in the last week of June. With a value of $2.3 billion, this should allow for price consolidation once processed.

Bitcoin is about to record its worst quarter since the start of the bear market of 2018

The current quarter is also on track to be the second worst recorded by BTC in the nearly eight years since the start of 2014.

According to cryptocurrency data aggregator Skew, Bitcoin is currently down nearly 46% for the quarter. Which makes it the weakest quarter since the first quarter of 2018. When it lost about 50% of its value in just three months amid the fall of the all-time highs of 2017.

Important background

  • Bearish sentiment strengthened on Monday after the People’s Bank of China reiterated its ban on crypto banking in the wake of the Chinese government’s crackdown on crypto mining.
  • Bitcoin extended the previous week’s sell-off, reaching five-month lows close to $ 29,000 during the early hours of Tuesday.
  • Still, prices had recovered to $ 34,000 by the end of the day. With the rapid recovery, Bitcoin has re-entered the wide range of $ 30,000 to $ 40,000 set after the mid-May liquidation.
  • Bitcoin options worth over $ 2 billion will expire on Friday. Monthly maturities have gained prominence this year as volatility inducing events.