For example, the Nasdaq 100 is down about 5% from its all-time high, compared with a 4% drawdown in the S&P 500 and a roughly 37% drawdown for BTC.
Still, despite the global market rout, bitcoin’s spot trading volume is at its lowest level in six months.
That means short traders, or those positioned for continued price declines, could be forced to unwind their positions if BTC’s price begins to rise.
“The premier cryptocurrency is not growing because of the inaction on the part of retail and most importantly, institutional investors to stack up on the coin,” Alexander Mamasidikov, co-founder of mobile digital bank MinePlex, wrote in an email to CoinDesk.
The chart below shows a rise in addresses holding 0-100 BTC over the past month, indicating an accumulation of bitcoin by small accounts.
Retail traders tend to sell quickly, which means the recent accumulation could be short-lived, especially if BTC fails to hold current price levels.
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Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis.
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