Between March 28 and 31, Bitcoin's price fell by 6.8%, but key metrics indicate strong investor confidence.
Price Drop and Key Metrics
Bitcoin prices fell from $87,241 to $81,331 within three days, leading to $230 million in futures positions being liquidated. This drop aligns with the S&P 500's decline to its lowest levels since March 14. Nevertheless, four indicators suggest strong long-term investor confidence.
Hashrate and Miner Activity
Bitcoin's hashrate, measuring the power behind the network's block validation mechanism, reached an all-time high. According to Blockchain.com, the 7-day average hashrate peaked at 856.2 million terahashes per second on March 28. There are no signs of panic selling from miners as there’s no significant inflow of Bitcoin to exchanges.
Exchange Reserves and Investor Confidence
Cryptocurrency exchange reserves reached their lowest levels in over six years at 2.64 million BTC on March 30. This indicates that investors are more inclined to hold, viewing $80,000 as a long-term buying opportunity.
Despite the current price fluctuations, investor confidence in Bitcoin's long-term potential is bolstered by record high hashrate and low exchange reserves.
