Cryptocurrency analysts have named the main reason for the rapid recovery of bitcoin’s value

The analysts explained why the flagship cryptocurrency’s rate quickly recovered despite high global inflation and the Consumer Price Index (CPI), all because the market was ready for a drop in the value of digital assets.

According to analysts, the main reason for the rapid recovery of bitcoin and the absence of downward volatility was that the market had built a negative scenario into current prices, which helped avoid further declines.

According to analysts, when most investors and traders expect a negative event (the negative CPI dynamics and high inflation have been known for a long time), they are ready for anything in advance and do not make «sudden moves» when something happens. Obviously, the main thing to do in case of sharp cryptocurrency drops is to remain calm.

Also, large (crypto whales) and medium-sized investors take advantage of the decline in the value of digital assets by buying them at a lower price. As it has become known, the number of crypto investors holding 10 or more BTC has reached its highest level since February last year, increasing by 1.12%. Thus, the world’s largest OTC bitcoin whale bought 2,554 bitcoins, owning 130,227 BTC or 0.68% of the market supply. Also, MicroStrategy, the largest corporate owner of bitcoin, bought 480 BTC to the 129,699 BTC it already owned.