Glassnode data indicates that short-term holders are growing more confident in the future of Bitcoin (BTC), increasing their holdings by one million. While long-term and large holders typically set trends, short-term holders could have a significant impact on the short-term movement of the digital asset.
BTC has been displaying notable strength as it nears its all-time high. Recent data from Glassnode suggests that short-term holders may be playing a crucial role in driving up BTC prices. The data reveals a substantial increase in BTC holdings among short-term holders, rising from 2.2 million BTC in January to over 3.4 million BTC by mid-April, resulting in an addition of around one million in just six months.
This surge points towards a bullish outlook for BTC, with short-term investors influencing the immediate price trend of the digital asset. It is not surprising, as short-term holders have historically taken a positive stance before a bull market. This also indicates a rise in engagement, possibly indicating an influx of new investors. Interestingly, the short-term holders include US spot Bitcoin ETF wallets, which have significantly contributed to the impressive numbers.
The increased engagement from these holders has led to high volatility in the past, as many tend to cash out once BTC prices soar to potential new highs.
This new trend is likely to impact other market participants, especially long-term holders and institutional investors. The optimistic sentiment of short-term holders forms the basis of a broader bullish sentiment in the overall market.
For newcomers who entered through the launch of Bitcoin spot ETFs, this trend could serve as a vital factor for ongoing accumulation. While Bitcoin ETF wallets are considered short-term holders for now, starting on June 15, the BTC acquired by ETFs will be reclassified as long-term holdings. This could provide different yet positive insights into investor interest and behavior.
Currently, BTC is trading at $71,200 following a 5.5% increase in the past week. At this price level, the digital asset is just 3% away from its all-time high of $73,730 reached in March.
With ETFs, long-term holders, short-term holders, and network growth driven by the recent halving affecting BTC, experts remain confident that the digital asset could reach $100,000 by the end of the year. The optimistic sentiment is further fueled by the expectation of rate cuts later this year following the Federal Reserve meeting next week.
Moreover, the upcoming US elections could have a significant impact on the asset’s price. Leading presidential candidate, Donald Trump, has expressed his support for Bitcoin and the crypto industry. Reports suggest that Trump has consulted with experts to explore using crypto to address US debt. If Trump wins, experts anticipate more favorable crypto regulations that could boost the industry and token prices simultaneously.