Bitcoin has broken $50,000 but is still well off its record high of nearly $69,000 seen in 2020
Bitcoin's downtrend in the past week has left many holders dumping alongside the German government, but a group of "permanent" holders have been busy amassing billions throughout the frenzy. AFP

KEY POINTS

  • 'Permanent' holders of Bitcoin accumulated nearly $5 billion worth of the digital asset in the last 30 days
  • Spot Bitcoin ETFs have also started regrouping after bleeding millions in June
  • Optimism has started picking up after Bitcoin started the week in the green

A group of Bitcoin holders is grabbing the attention of cryptocurrency analysts: "permanent holders." They are not $BTC miners or digital asset exchanges. They're also not among the individuals and institutions who've dabbled into exchange-traded funds (ETFs), as per an industry expert, and yet they've already accumulated thousands of Bitcoins within a 30-day period.

'Permanent' holders buying the dip

Ki Young Ju, founder and CEO of on-chain and market data analytics firm CryptoQuant, revealed Wednesday that "permanent holders" have amassed 85,000 Bitcoin in the last 30 days. Based on current prices, the value of the coins is $4.9 billion.

The said emerging group of Bitcoiners are "mostly custodial wallets with no outflows." Compared to their buying activity, spot Bitcoin ETFs shed 16,000 $BTC in the last 30 days, marking a stark contrast in the behaviors of the two groups. "While some panic sell, 'the others' are buying," Ki said.

ETFs shed millions before gradually regrouping

The activity of so-called permanent Bitcoin holders comes as $BTC ETFs suffered a rough time last month. U.S. spot Bitcoin ETFs bled millions throughout June before regrouping earlier this week to haul in nearly $295 million, led by BlackRock's IBIT.

The ETFs' Monday buying spree was triggered by a slump in $BTC prices, largely blamed on the German government's massive sell-offs of its seized Bitcoins and the creditor repayment activity of collapsed crypto exchange MtGox.

Seeing the opportunity in adversity

Pessimism infiltrated the Bitcoin community since Germany's dump started. Many Bitcoiners expressed fear of the digital currency's future as prices continued to plunge. However, it appears that long-term holders of the world's first decentralized cryptocurrency haven't lost hope and optimism is picking up.

A growing number of crypto investors are urging other holders to see the price plunge as "a chance to buy more."

Bitcoin gradually climbs after snapping streak

Meanwhile, $BTC broke its three-day upswing streak after starting Thursday in the red. It reclaimed $59,000 at one point early Wednesday before plummeting throughout the day and starting a new day at around $57,500. The token has since climbed above $58,000, as per CoinGecko.

Is up the only path forward?

Arsen Thagapsov, the social media head at Bitcoin app Relai, believes that history will likely repeat itself. "Bitcoin goes to a new all-time-high every 4 years," he wrote Wednesday. "This dip is nothing new," he added.

Some analysts also previously projected that the MtGox activity won't really have a significant effect on $BTC prices, especially if the fallen exchange opts for an over-the-counter deal.

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