Three Arrow Capital CEO Su Zhu shared his views on the current behavioral pattern of bitcoin holders and compared it to the previous cycle in 2018.
According to onchain data, most major bitcoin investors who have owned the cryptocurrency for more than a year choose to hold and accumulate additional coins despite a severe correction in the market.
Su Zhu attributes the change in investor behavior to an unpleasant experience some traders had because of the cryptocurrency’s premature selling between 2018 and 2019, when it was trading at its bottom.
After the “crypto-zima” and a complete lack of trading volume and purchasing power, the cryptocurrency market entered a recovery phase in 2020 that lasted until November 2021.
“One of the reasons the data online shows impressive holding behavior is that many people actually bought BTC in 2017/2018 only to sell the asset at a loss due to loss of patience. Oddly enough, many of these people have become more frugal this time around and have started buying every month regardless of what’s going on,” he stated.