However, long-term holders have managed to maintain a high level of conviction.
ARK Investment Management analyst Yasin Elmandjra pointed out that short-term bitcoin holders have surrendered.
The MVRV ratio, which measures the market cap of bitcoin relative to the real value of the flagship cryptocurrency, has fallen 35% in breakeven value.
According to Elmandjra, such levels have been observed from January 2020 and July 2021.
Popular on-chain metrics are often used to gauge the mood of investors when investing.
Nevertheless, long-term holders still have their hands on the diamond. Meanwhile, more than 66% of all bitcoin in circulation hasn’t moved in more than a year, which is yet another record high.
The analyst says that the key fundamentals of the network, such as usability and security, also remain healthy.
Cryptocurrency exchanges saw record-breaking inflows last month amid the Terra collapse that rocked the cryptocurrency industry.
As reported by U.Today, bitcoin price briefly declined to the $25,000 level. The Demist of the Terra Blockchain was one of the biggest black swan events of cryptocurrency ever. The market, however, managed to partially recover from the massive fiasco.
At press time, bitcoin is still trading below the $30,000 level. The cryptocurrency is on track to post negative returns for the tenth week in a row.
Now that the largest cryptocurrency is in the midst of another bear market, some believe it could drop to $12,000 or even return to $8,000.