Market volatility challenges Bitcoin investors
Long- and medium-term Bitcoin (BTC) investors, known as “cruisers” and “hodlers,” significantly reduced their positions in the world’s leading cryptocurrency this week. According to data from IntoTheBlock, cruisers’ holdings decreased from a yearly high of 5.658 million BTC on October 6, 2024, to 5.527 million BTC. This represents a drop of 2.31%.
Medium-term investors, known as "hodlers," also reduced their BTC positions, as did "cruisers" / TradingView
Who are “cruisers”?
“Cruisers” are investors who hold their positions in Bitcoin for long periods, usually between five and ten years. This group seeks to profit from long-term market trends, avoiding daily volatility.
Changes in the positions of "hodlers"
On the other hand, medium-term investors, known as "hodlers", also reduced their BTC positions, as did "cruisers". From 12.874 million BTC on October 7, 2024, their holdings fell to 12.737 million BTC, a decrease of 1.06%. "Hodlers" are those who hold Bitcoin between two and five years, trusting in its appreciation in the medium term.
Increase in the positions of "traders"
Conversely, short-term investors, or "traders", increased their positions from 1.249 million BTC to 1.519 million BTC, an increase of 21.61%. "Traders" seek to capitalize on daily market fluctuations, taking advantage of volatility to make quick profits.
Economic Context and Its Impact on Bitcoin
Despite expectations of an “Uptober” and the past Bitcoin “halving,” the cryptocurrency experiences a 3.46% decline this month, trading at $61,142.99. Economic uncertainty, influenced by inflation and employment data, continues to affect the price of Bitcoin. Although inflation is approaching the Federal Reserve’s target, slow progress limits further aggressive rate cuts, strengthening the dollar and hurting Bitcoin.
Future Outlook
The US labor market is showing signs of weakness with an increase in unemployment claims, which could lead the FED to accelerate rate cuts, weakening the dollar and potentially strengthening Bitcoin. However, the Bitcoin market remains neutral, with low trading volumes and 90% of addresses with unexecuted profits.
The Bitcoin market is facing a challenging environment, with investors adjusting their strategies in response to economic volatility. The evolution of monetary policies and global economic conditions will continue to be key factors for the future of the cryptocurrency.
Disclaimer: This news is informative and does not constitute financial advice.