In recent weeks, the price of Bitcoin has been facing intense volatility as sellers dominate the price chart. As a result, a growing number of analysts have compared Bitcoin’s current price action to the 2022 bear market. However, the comparison is based largely on short-term chart similarities. But a closer look at the larger data shows that this approach is deeply wrong, as revealed by a top analyst. Public companies alone hold more than 1.3 million BTC, and ETFs control a meaningful portion of the circulating supply. Because these holders tend to buy for the long term, much of that Bitcoin is effectively taken off the market, reducing short-term trading and overall volatility. The way Bitcoin supply is behaving also shows how much the market has changed. Coins held on exchanges have dropped from more than three million in 2022 to under 2.8 million today, meaning there is less fast-moving “hot money” that can be quickly sold during market stress. Long-term holders are no longer dumping coins in panic. Instead, Bitcoin is slowly moving into the hands of institutions and corporate treasuries. At the same time, large investors and mid-sized holders have become the main buyers, with accumulation close to the highest levels seen in this cycle. The analyst claimed that for Bitcoin to experience a bear market like the one in 2022, several major factors would have to return. That would include a new inflation shock, central banks sharply raising rates again, and a clear, lasting breakdown below key long-term support levels. Without those conditions, treating today’s Bitcoin market as a repeat of 2022 overlooks how fundamentally the structure of the market has changed.About Author
