Solana (SOL), also known as the ‘Ethereum Killer’ suffered from heavy losses since November 2021. At its peak Solana was trading at $260 (approx.) and is currently orbiting around $94. We will discuss whether SOL has the potential to break higher with its projects and tokens.
Why Investors Are Selling Solana?
Before attempting to assess whether Solana can indeed rebound from its current levels, it is important to understand what leads to the strong selling in the cryptocurrency. While some analysts are pointing to the recent OpenSea phishing attack as the cause, Solana has suffered from more severe issues.
Congestion in the network weighed on the cryptocurrency last month. The recent wormhole bridge hack only fueled the selling.
source: ethexplorer
Over $320 million was stolen via the wormhole bridge that allowed investors to ETH from the Ethereum blockchain to Solana. The ETH is converted to Wormhole ETH or wETH for short, which is pegged to the value Ethereum in the ETH blockchain.
A vulnerability in the bridge’s function (validator action approval or VAA for short) enabled the hacker to mint 120,000 wETH, which was valued at a notch over $322 million. The hacker transferred 93,750 wETH back to ETH, the remaining 26,250 wETH was swapped for 432,662 SOL (approx.).
source: wETH minting hack recorded at solana explorer
As 120,000 wETH went missing (from the mint) it was required for the sum to be replaced. Initially, there was great uncertainty as to who would provide the missing cryptocurrencies.
Jump Crypto Replaced 120,000 wETH
A message was sent to the attacker via Notifi, an Ethereum messaging service. The hacker was offered a bounty of $10 million for the exploit details and the return of the minted wETH,
“We noticed you were able to exploit the Solana VAA verification and mint tokens. We’d like to offer you a whitehat agreement, and present you a bug bounty of $10 million for exploit details, and returning the wETH you’ve minted.”
(View the full message on Notifi)
The hacker ignored the message and kept the 93,750 ETH in his account.
Jump Crypto shortly announced on Twitter that it has replaced the missing 120,000 wETH in order to sustain the network. Without the cryptocurrencies, there would have been serious repercussions. The vulnerability in the wormhole bridge was patched.
The bridge hack is what took SOL below $100 in the market. Investors would like to see some reassurance that security is a top priority. Solana is trading in tandem with leading
cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term such as ETH and Bitcoin.
Solana OpenSea Integration?
The hacker house events are a great idea. Core Solana Labs engineers participate in offline events, providing educational programming on DeFi, NFTs and how to start working with Solana. If the events would have been announced following the bridge exploitations and not in January, perhaps it would have had some impact on SOL.
We explored the play to earn games that are based on Solana’s blockchain. According to playtoearn.net which is listing the top 50 games per
blockchain
Blockchain
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others.
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term, only 3 games that are based on Solana are actually live. Most of the games are in development or in beta and alpha.
Age of Sam, a popular NFT Solana based project may be insufficient to lift the cryptocurrency higher.
At the end of January speculations on the Solana OpenSea integration surfaced. A well-known Hong Kong hacker by the name of Jane Manchun Wong is notorious for unearthing app features before they are publicly announced.
Jane has already revealed features on Instagram, Spotify and Facebook before they were announced to the public. According to a tweet on 25 January 2022, OpenSea is developing an integration with Phantom wallet.
Phantom wallet is used for buying and selling crypto and NFTs on the Solana blockchain.
Jane claims she used reverse engineering to unmask OpenSea’s intentions to integrate Solana into the NFT marketplace. OpenSea declined to confirm it has such plans.
Adding SOL to OpenSea, which is currently the biggest NFT marketplace platform, may contribute to SOL recovery from the bridge hack. Because of the recent phishing attack OpenSea experienced, the chance that such plans having ever existed may now be delayed.
OpenSea is currently busy dealing with the phishing attack. If there were integrations plans they may be delayed.
Is It a Good Time to Buy Solana?
From the technical end, Solana may struggle to trade back above $130. The next support based on the monthly chart is around $52. To invalidate the downtrend in the monthly chart, SOL may require to trade back above $160.
Based on the daily chart, some support is offered at the $84 mark. If Solana succeeds in breaking above $121, it may extend its gains towards $140.
Portals announced last week they have raised $5 million to build a metaverse platform based on the Solana blockchain. Foundation Capital and Alameda Research participated in the funding round.
Adam Gomez, the Co-Founder of Portals, said, “We are building an entirely new Times Square in the metaverse.” Building the platform may take time and had no impact on cryptocurrency.
President Biden is expected to issue the executive order on cryptocurrencies this week. The executive order will instruct governing bodies to begin the coordination of crypto regulations. It is unclear at the time of writing the impact the order will have as it is widely anticipated.
One event that has triggered a reaction in the crypto markets is the Fed monetary policy. A rate hike is expected in March 2022 with possible insights into the pace of future rate hikes. It is still early to predict how will the Fed impact SOL as it greatly depends on the monetary policy.
The daily support at $84 appears to be the only lifeboat for SOL at the time of writing.
Solana (SOL), also known as the ‘Ethereum Killer’ suffered from heavy losses since November 2021. At its peak Solana was trading at $260 (approx.) and is currently orbiting around $94. We will discuss whether SOL has the potential to break higher with its projects and tokens.
Why Investors Are Selling Solana?
Before attempting to assess whether Solana can indeed rebound from its current levels, it is important to understand what leads to the strong selling in the cryptocurrency. While some analysts are pointing to the recent OpenSea phishing attack as the cause, Solana has suffered from more severe issues.
Congestion in the network weighed on the cryptocurrency last month. The recent wormhole bridge hack only fueled the selling.
source: ethexplorer
Over $320 million was stolen via the wormhole bridge that allowed investors to ETH from the Ethereum blockchain to Solana. The ETH is converted to Wormhole ETH or wETH for short, which is pegged to the value Ethereum in the ETH blockchain.
A vulnerability in the bridge’s function (validator action approval or VAA for short) enabled the hacker to mint 120,000 wETH, which was valued at a notch over $322 million. The hacker transferred 93,750 wETH back to ETH, the remaining 26,250 wETH was swapped for 432,662 SOL (approx.).
source: wETH minting hack recorded at solana explorer
As 120,000 wETH went missing (from the mint) it was required for the sum to be replaced. Initially, there was great uncertainty as to who would provide the missing cryptocurrencies.
Jump Crypto Replaced 120,000 wETH
A message was sent to the attacker via Notifi, an Ethereum messaging service. The hacker was offered a bounty of $10 million for the exploit details and the return of the minted wETH,
“We noticed you were able to exploit the Solana VAA verification and mint tokens. We’d like to offer you a whitehat agreement, and present you a bug bounty of $10 million for exploit details, and returning the wETH you’ve minted.”
(View the full message on Notifi)
The hacker ignored the message and kept the 93,750 ETH in his account.
Jump Crypto shortly announced on Twitter that it has replaced the missing 120,000 wETH in order to sustain the network. Without the cryptocurrencies, there would have been serious repercussions. The vulnerability in the wormhole bridge was patched.
The bridge hack is what took SOL below $100 in the market. Investors would like to see some reassurance that security is a top priority. Solana is trading in tandem with leading
cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term such as ETH and Bitcoin.
Solana OpenSea Integration?
The hacker house events are a great idea. Core Solana Labs engineers participate in offline events, providing educational programming on DeFi, NFTs and how to start working with Solana. If the events would have been announced following the bridge exploitations and not in January, perhaps it would have had some impact on SOL.
We explored the play to earn games that are based on Solana’s blockchain. According to playtoearn.net which is listing the top 50 games per
blockchain
Blockchain
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others.
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term, only 3 games that are based on Solana are actually live. Most of the games are in development or in beta and alpha.
Age of Sam, a popular NFT Solana based project may be insufficient to lift the cryptocurrency higher.
At the end of January speculations on the Solana OpenSea integration surfaced. A well-known Hong Kong hacker by the name of Jane Manchun Wong is notorious for unearthing app features before they are publicly announced.
Jane has already revealed features on Instagram, Spotify and Facebook before they were announced to the public. According to a tweet on 25 January 2022, OpenSea is developing an integration with Phantom wallet.
Phantom wallet is used for buying and selling crypto and NFTs on the Solana blockchain.
Jane claims she used reverse engineering to unmask OpenSea’s intentions to integrate Solana into the NFT marketplace. OpenSea declined to confirm it has such plans.
Adding SOL to OpenSea, which is currently the biggest NFT marketplace platform, may contribute to SOL recovery from the bridge hack. Because of the recent phishing attack OpenSea experienced, the chance that such plans having ever existed may now be delayed.
OpenSea is currently busy dealing with the phishing attack. If there were integrations plans they may be delayed.
Is It a Good Time to Buy Solana?
From the technical end, Solana may struggle to trade back above $130. The next support based on the monthly chart is around $52. To invalidate the downtrend in the monthly chart, SOL may require to trade back above $160.
Based on the daily chart, some support is offered at the $84 mark. If Solana succeeds in breaking above $121, it may extend its gains towards $140.
Portals announced last week they have raised $5 million to build a metaverse platform based on the Solana blockchain. Foundation Capital and Alameda Research participated in the funding round.
Adam Gomez, the Co-Founder of Portals, said, “We are building an entirely new Times Square in the metaverse.” Building the platform may take time and had no impact on cryptocurrency.
President Biden is expected to issue the executive order on cryptocurrencies this week. The executive order will instruct governing bodies to begin the coordination of crypto regulations. It is unclear at the time of writing the impact the order will have as it is widely anticipated.
One event that has triggered a reaction in the crypto markets is the Fed monetary policy. A rate hike is expected in March 2022 with possible insights into the pace of future rate hikes. It is still early to predict how will the Fed impact SOL as it greatly depends on the monetary policy.
The daily support at $84 appears to be the only lifeboat for SOL at the time of writing.
Bitcoin on-chain analysis can be a good way to try to guess where the market is headed. The market tends to repeat itself with metrics looking the same before a bull or a bear rally, thus making this data a pretty good indicator of what’s to come. Analyst Willy Woo uses this same data to demonstrate a pattern that occurs before the bull rally, the criteria which are being met once again.
Start Of A Bull Run?
In a recent string of tweets, analyst Willy Woo presents data from on-chain analysis that points to the bitcoin dump having reached its bottom. According to him, “Price in relation to on-chain demand from both speculative and hodl category of investors are now both at peak oversold levels.” Woo points out that the last time that something like this had happened was when bitcoin reached its bottom following the COVID crash.
Price in relation to on-chain demand from both speculative and hodl category of investors are now both at peak oversold levels.
The last time this happened was October 2020. The time before that was at the bottom of the COVID crash.
The analyst further outlines the times where this has happened in the past. Going as far back as 2012, he points out the same had been the case in February of that year. What followed had been the memorable 2021-2013 bull run that saw bitcoin gain more popularity among investors.
Related Reading | Bitcoin Halving To Bring The Subsequent Crypto Frenzy
Fast forward to 2015 and the same had been the case in January of that year. This time, the on-chain metric spelled the bottom of the bear market that had begun previously in 2014, putting an end to the onslaught.
If Woo is right and the on-chain metric continues the way it has historically, then bitcoin may very well have reached the bottom, suggesting that this is the end of the downtrend. However, there is no telling if this is actually the case given that bitcoin had recorded back-to-back bull rallies in 2021.
Bitcoin On The Charts
Bitcoin has lost almost 50% from its all-time high of $69k which it hit in November of last year. This has however not affected the profits of the majority of holders. The digital asset remains one with the highest volume of holders that remain in profit after the market crash.
Related Reading | El Salvador Chivo Bitcoin Wallet Relaunch To Serve 4 Million Users
According to data from IntoTheBlock, 60% of all bitcoin holders are still in profit at current prices. It is important to note that the cryptocurrency was subject to massive sell-offs when investors panicked that the downtrend will continue. Most however have still kept their highly profitable status, with only 35% of all holders currently losing at market prices.
Bulls struggle to pull BTC up as bears take hold | Source: BTCUSD on TradingView.com
The majority are long-term holders and indicators point to investors still being very bullish on the digital asset despite the downtrend. With its current growth curve, it is expected that the cryptocurrency will see 1 billion holders in the next four years, making it a highly sought-after asset.
Featured image from Bitcoin News, chart from TradingView.com
