Long-term bitcoin investors appear to be undeterred by the recent downturn in prices. Blockchain analytics firm Glassnode's net position change indicator for holders that have kept bitcoin for over 6-month has showed a steady increase in the past 4 weeks. These investors don't seem to consider the dip a sign of bearishness. On the other hand, research and strategy head Markus Thielen at Matrixport has said that the recent decoupling of BTC price from Nasdaq should raise caution among short-term traders.

The Nasdaq has continued to rally while BTC price has dropped 12% since mid-April. BTC in the past several months has been closely following the Nasdaq-to-S&P 500 ratio, suggesting the current market environment could signal a more significant divergence between the two. Thielen said that because there are fewer shorts, there cannot be a squeeze that could bring BTC prices up as there could be with tech stocks.

Long-term bitcoin holders, however, continue to accumulate tokens at this time, which implies that investors view the recent price movements as an opportunity to buy more coins.

Overall, there seems to be a trend of decoupling among BTC and tech stocks. This will be something to keep an eye on for long-term and short-term investors alike. They will have to monitor the trend in order to determine if strategic adjustments should be made to take advantage of market alterations, or if the existing strategies should be followed. As many bears have been shorting tech stocks expecting a U.S. recession and have yet to be proven right, BTC investors should also take caution.



Other News from Today