• Bitcoin DCA strategy from ATH outperforms S&P 500
• BRC-20 tokens lose 600 million in market cap within four days
• Bitcoin drops to $26K as a result of Binance whales selloff
Bitcoin DCA Strategy Outperforms the S&P 500
Bitcoin has experienced a significant drop since its all-time high, leaving many investors uncertain about what to do with their investments. Glassnode data reveals that a $10 daily investment in Bitcoin since its peak has resulted in an unexpected positive return, outperforming the S&P 500 by 13%. This strategy is known as Dollar Cost Averaging (DCA).
BRC-20 Tokens Losing Market Cap
In addition to the successful DCA strategy, other news developments have impacted the cryptocurrency market recently. The BRC-20 tokens lost around 600 million USD in market capitalization within four days. This was likely due to speculation surrounding their upcoming mainnet launch and potential price volatility.
Bitcoin Drops to $26K Due to Whales Selloff
The drop in Bitcoin’s price was also attributed to a recent selloff by large investors known as “whales” on the major exchange Binance. The selloff led Bitcoin to dip below $30,000 USD for the first time since February 2021, reaching a new low of $26,000 USD.
Divergence Between Long-Term and Short-Term Holders Could Set Up Bullish Squeeze
Data suggests that there is currently a divergence between long-term and short-term holders of bitcoin which could potentially set up a bullish squeeze if prices continue to fall. The divergence occurs when holders who bought at lower prices are unwilling to sell while those who bought at higher prices are eager to exit their positions.
Bitcoin Mempool Clears As Fee Paid Per Block Falls Back To One
Finally, another positive development for bitcoin is that its mempool is clearing out once again as the fee paid per block falls back down closer towards one satoshi per byte after reaching highs of over 40 satoshis last month. This indicates that transactions are being processed more quickly than they were previously and provides some hope for users who have been waiting weeks or even months for confirmations on their transfers due to network congestion.