Glassnode data reveals that short-term holders are displaying increased confidence in Bitcoin’s future, as they have added one million BTC to their holdings. While long-term and large holders typically set the trends, short-term holders could have a significant impact on the short-term trajectory of the cryptocurrency.
As Bitcoin approaches its all-time high, recent data from Glassnode suggests that short-term holders are playing a crucial role in driving up BTC prices. The data shows 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, marking an addition of around one million BTC in just six months.
This uptrend indicates a bullish outlook for BTC, with short-term investors influencing the immediate price movements of the digital asset. This behavior aligns with historical patterns, where short-term holders tend to take a bullish stance before a bull run, indicating growing engagement and potentially attracting new investors. Notably, the short-term holders include US spot Bitcoin ETF wallets, which have contributed significantly to the impressive figures.
The heightened engagement of these holders has historically led to increased volatility, with many opting to cash out once BTC prices surge to new highs. This new trend is expected to have a ripple effect on other market participants, starting with long-term and institutional holders, setting a positive tone for the broader market sentiment.
For newcomers entering the market through Bitcoin spot ETFs, this trend could serve as a catalyst for continued accumulation. Although these ETF wallets are classified as short-term holders currently, a reclassification is set to take place on June 15, designating the Bitcoin acquired by ETFs as long-term holdings. This shift in classification could offer unique insights into investor behavior and interest.
At the time of writing, BTC is trading at $71,200 following a 5.5% surge in the past week, inching closer to its all-time high of $73,730 reached in March by just 3%. The positive momentum driven by ETFs, long-term holders, short-term holders, and network growth resulting from the recent halving has experts optimistic about BTC reaching $100,000 by the year’s end. Additionally, investor expectations of Federal Reserve rate cuts following their upcoming meeting and the potential impact of the US elections later this year on Bitcoin’s price further fuel this bullish sentiment.
Furthermore, with US President Donald Trump expressing support for Bitcoin and the crypto industry, there is anticipation of friendlier regulations that could boost the industry and token prices if he secures another term. Trump has reportedly engaged experts to explore leveraging crypto to address US debt, indicating a potential shift in regulatory stance under his leadership.