Bitcoin’s resilience is on show again as it weathers current market volatility with long-term holders showing continued conviction in the face of recent price corrections. The digital asset’s history has been riddled with bear markets, but has proven to be resilient enough to bounce back and achieve new record highs. New data demonstrates that even with these bearish market dynamics, some major indicators point to an underlying conviction in Bitcoin’s long-term appreciation.

Historical Resilience and Future Predictions

Since Bitcoin’s introduction in 2010, the cryptocurrency has experienced fifteen corrections of more than 30%. On each occasion, this trend has resulted in the establishment of new all time highs. This historical pattern gives long-term holders a belief that current pullbacks are just bumps in the road.

Robert Kiyosaki of “Rich Dad Poor Dad” fame just issued a doozy. He even thinks Bitcoin will reach $1 million by 2035. Such predictions, though inevitably speculative, help feed the narrative of Bitcoin as a long-term store of value.

Supply Dynamics and Network Activity

The supply of Bitcoin that hasn’t moved in more than a year recently reached an all-time high of 62%. This trend demonstrates that a significant majority of investors are deeply committed to their investments. This suggests that a large majority of Bitcoin holders are holding long-term. Consequently, this is inflationary and serves to increase future price appreciation.

Bitcoin network activity increased by 18% since January. This increase is a harbinger of greater acceptance and use of the crypto for payments and other applications. This uptick in activity is a testament to the growing utility and adoption of Bitcoin across multiple sectors.

Market Participants and Strategies

With Bitcoin’s price still far from reaching the historic $70,000 level, it puts various groups of investors in a difficult situation. For those whose average acquisition cost is less than 30K, even these prices are still extremely profitable. A further decline to $60,000 would result in losses for some holders, particularly those who entered the market at higher price points. Their average entry cost, for many investors, is over $80,000, which has left these investors exposed to the current downturn.

During all this market volatility, other investors are taking the opportunity to sell Bitcoin at discounted prices. In the meantime, institutions such as BlackRock are cleverly positioning themselves to grab up Bitcoin while prices are low. This major difference in strategy illustrates the key differences in views and priorities between the short-term focused trader and the long-term investing institutional investor. In April alone, Bitcoin ETFs saw $420 million of net inflows, a clear sign that institutional investor interest remains strong.

In contrast, short-term holders of Bitcoin today are suffering under the weight of panic selling as retail unfolds in real time given the historical volatility. For the hardcore BTC maxis, it’s part of their religious belief that Bitcoin shines above the market cycles. They credit this resilience to the decentralized nature and limited supply of the asset itself.