Glassnode data indicates a surge in confidence among short-term Bitcoin (BTC) holders, with an increase of one million in their holdings.
While long-term and large holders typically set trends in the market, short-term holders could have a significant impact on the short-term trajectory of the digital asset.
As BTC nears its all-time high, recent data from Glassnode suggests that short-term holders are playing a crucial role in driving up prices. According to Glassnode, short-term holders have substantially increased their BTC holdings, rising from 2.2 million BTC in January to over 3.4 million BTC in mid-April. This equates to an addition of around one million BTC in just six months.
This increase signals a positive outlook for BTC, as short-term investors are influencing the short-term price movement of the digital asset. It is not surprising, as short-term holders have historically taken a bullish stance before a bull run. This also indicates a rise in engagement, potentially attracting new investors. Interestingly, the US spot Bitcoin ETF wallets, which are considered short-term holders, have played a significant role in this growth.
The engagement of these holders has led to increased volatility in the past, as many tend to cash out once BTC prices surge to new all-time highs.
This new trend is expected to impact other market players, starting with long-term holders and institutional investors/large holders. The optimistic stance of short-term holders serves as the foundation for a positive market outlook overall.
For newcomers who entered the market through Bitcoin spot ETFs, this trend could encourage continued accumulation. Although Bitcoin ETF wallets are currently classified as short-term holders, starting June 15, the BTC acquired by ETFs will be reclassified as long-term holdings. This could provide different yet still positive insights into investor interest and behavior.
At the time of writing, BTC is trading at $71,200 following a 5.5% increase in the past week. With current prices, 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 all contributing to BTC’s momentum, experts are optimistic that the digital asset could reach $100,000 by the end of the year. Investor confidence is further bolstered by expectations of rate cuts following the Federal Reserve meeting next week.
The upcoming U.S. elections could also have a significant impact on BTC’s price, with presidential frontrunner Donald Trump voicing support for Bitcoin and the crypto industry. Should Trump win, experts anticipate more favorable crypto regulations that could boost the industry and token prices.
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