After a week of immense volatility , Bitcoin and other cryptocurrency assets have witnessed stability over the last few days. The overall market cap of crypto assets stayed above the important level of $2.5 trillion on Thursday.
Digital assets like Ethereum (ETH), Solana (SOL) and Cardano (ADA) held onto most of their weekly gains. In the last seven days, ETH jumped by nearly 5% while SOL climbed by almost 10% and added $6 billion to its market cap during the mentioned period.
In November’s market correction, several crypto whales emerged and purchased leading digital assets. Additionally, institutional investors joined the ‘buy the dip’ movement with large investments. MicroStrategy is one of them as it recently expanded its BTC portfolio with the acquisition of nearly 7,000 coins.
Despite the bullish sentiment from institutional investors, Bitcoin’s exchange inflows have triggered panic among retail traders as they fear selling pressure. “BTC’s exchange inflows have outpaced outflows significantly, as FUD combined with a jump in COVID-19 concerns is causing traders to consider selling funds. On Wednesday, there were 10,242 more BTC moving on to exchanges vs. moving off exchanges,” the crypto firm, Santiment highlighted on Twitter.
Crypto Recovery?
Historically, the crypto market witnessed major corrections after bullish rallies. With a substantial jump of more than 200% in the overall market cap a crypto correction was due. The latest stability above the $2.5 trillion market cap indicates that long-term holders are still bullish about Bitcoin, Ethereum and other crypto-assets.
“With Bitcoin now over 20% below the all-time-high, headlines in traditional media have declared that Bitcoin has entered a bear market. However, it may surprise some readers that this current market correction is actually the least severe in 2021. Some might even say business as usual for a Bitcoin HODLer. Sell-offs in Jan, Feb and April all reached drawdowns as deep as -24.2% from the ATH before reverting,” stated in Glassnode’s recent on-chain analysis report.
