Bitcoin's bear market has caused "tourists" to disappear from the market and their spirits have been destroyed, according to analyst Philip Swift. Bitcoin's risk-reward right now presents a macro buying opportunity, as data shows a move from capitulation to accumulation. The popular HODL Waves metric groups coins based on how long they have been dormant until they have left your wallet, and shows how long-term or short-term holders are transacting. The Realized Cap HODL (RHODL) Waves metric additionally weights these bands by the realized price. According to Swift, RHODL shows a clear minority of coins moving around the network shortly after being used in a previous transaction, with current transactions involving tokens that last moved between 6-12 months ago as the oldest age range. common.
"Investing in Bitcoin in a bear market can be very profitable if you choose the right time!"
The BTC/USD pair is currently around 70% below its recent all-time highs, and the decline has driven many short-term investors out. The FTX scandal has precipitated an even greater capitulation, which continues to cause panic among nervous investors. According to Swift, the risk-reward ratio for investing in Bitcoin right now is very attractive based on historical trends in the RHODL Waves metric. In summary, the Bitcoin bear market has caused a lack of euphoria among investors and according to Swift, it is a good time to invest due to the attractive risk-reward ratio at the moment.
