Despite Bitcoin's 20% drawdown over the last month, long-term holders are continuing to buy the dip.

According to CryptoQuant, long-term holders of bitcoin have been accumulating the digital asset at rates not seen since April 2023. The price of a single bitcoin fell into the mid $50,000s in early July, where it has since stabilized due to the high volume of liquidity being poured into it.

Bitcoin spot ETFs have seen inflows come back as well, reaching levels that have not been seen since early June, when bitcoin was around $70,000. Over the last 3 days, over $600 million has been swallowed up by ETF providers. The leading provider, Blackrock, accounted for over $200 million of this number.

Bitcoin’s drop was likely driven by sell pressures both from now defunct exchange Mt. Gox beginning repayments to investors who were affected by the hack that led to almost 1 million bitcoin being lost a decade ago and the German government’s moves to offload a stash acquired from criminals. The nation still holds around $1 billion in bitcoin after selling off billions of dollars worth of the crypto in early July.

Bitcoin seems to have found support in the $55,000-$58,000 range, and investors are taking the opportunity to buy the asset for cheap. Attitudes are positive despite the rough start to the month. Crypto analysts, including Grayscale's Head of Research, are beginning to not the tide change. ETF inflows are rising and long-time holders are buying more than they have in over a year.

Historically, July has been a positive month for bitcoin, rising an average of 9% during this time. Investors and analysts are happily taking advantage of the cheaper prices right now, and the asset could be poised to recover its recent losses.