Bitcoin (BTC) Holds Steady Above $95,000 Despite Crypto Market Volatility

From beincrypto by Aaryamann Shrivastava

Bitcoin has faced challenges in breaking above the $100,000 level this month, showing volatility as it struggles to close above this critical threshold. 

Despite this, Bitcoin continues to be one of the best-performing assets this year and is likely going to witness growth again. 

Bitcoin Investors Are Not Facing Losses

In recent weeks, Bitcoin has managed to stay near its starting position despite the overall market volatility. While altcoins, particularly those in the ERC20 sub-sector, have faced significant selling pressure, Bitcoin has shown resilience. This relative stability is a positive indicator, demonstrating Bitcoin’s strength amid broader market weakness.  

The underperformance of altcoins highlights broader challenges within the crypto market, with adoption and market positioning lagging. As Bitcoin continues to consolidate its position, it’s clear that the crypto king is outperforming many other assets, setting the stage for a potential rally when investor sentiment improves. 

Bitcoin’s macro momentum shows signs of growth despite recent fluctuations in the market. One key indicator is the number of non-empty wallets on the Bitcoin network, which is at its lowest point in two months. This decline reflects a retreat of smaller traders who have exited the market, primarily due to fears of a wider crypto downturn.  

Historically, these declines in retail participation have been positive signs for Bitcoin’s price in the mid to long term. When small traders drop out, larger investors, such as whales and sharks, tend to accumulate Bitcoin. These entities often use their capital to push the market higher, especially during times of heightened fear, thus setting the stage for future price growth.