Following the halving event, traders are delving deeper into their research of Bitcoin’s resiliency in the event of a probable lengthy market drop. The strategy of “hodling”, holding onto Bitcoin for the long term, is becoming a more prominent topic of conversation.
Santiment, a market intelligence platform, has posted in the X that there has been a noticeable movement in investor sentiment towards safer assets like Bitcoin as other altcoin sectors, including those in artificial intelligence (AI), gaming, decentralized finance (DeFi), and meme coins, see significant retracements.
One crypto investor user on X, named @Crypto_Wolfie1, has shared that while Bitcoin has seen a brief upswing, some traders believe this is a passing occurrence amid more general signs of a market correction that have been present for the last two weeks.
The user said, “Bitcoin dominance break out. Altcoins are being sold off & funds are being cycled back into #btc and USDT.”
The user explains that observations on the monthly chart suggest Bitcoin’s overbought conditions, leading to increased attention on Bitcoin dominance as it breaks out. Sell-offs of cryptocurrencies are occurring concurrently, with money being diverted back into BTC or into stablecoins like USDT.
Traders expect a continuous flight from alternative cryptocurrencies to Bitcoin coupled with increased liquidations into traditional fiat currencies as fear, uncertainty, and doubt (FUD) continue to rise within the cryptocurrency community.
Also Read: Bitcoin Miners May Sell $5 Billion in BTC Post-Halving
