Glassnode data indicates that short-term holders are increasingly optimistic about the future of Bitcoin (BTC), as they have added one million coins to their holdings.
While long-term and large holders typically set the tone for market trends, short-term holders can have a significant impact on the immediate price movements of the cryptocurrency.
Bitcoin (BTC) has been demonstrating remarkable strength as it nears its all-time high. Recent information from Glassnode suggests that short-term holders may be playing a crucial role in driving up BTC prices. According to Glassnode, short-term holders have significantly boosted their BTC holdings, growing from 2.2 million BTC in January to over 3.4 million BTC by mid-April, resulting in an increase of approximately one million coins in just six months.
This increase in holdings presents a positive outlook for BTC, with short-term investors influencing short-term price trends for the digital asset. This behavior is not surprising, as short-term holders have historically positioned themselves bullishly ahead of market rallies. It also indicates a rise in engagement, potentially attracting new investors. Interestingly, the short-term holders include US spot Bitcoin ETF wallets, which have played a significant role in this impressive growth.
The active involvement of these holders has previously led to heightened volatility, as many tend to cash out when BTC prices surge to new highs.
This new trend is expected to impact other market participants, starting with long-term holders and institutional investors. The optimistic stance of short-term holders serves as the basis for the overall positive market sentiment.
For newcomers who entered the market through Bitcoin spot ETFs, this trend could encourage further accumulation. Despite being classified as short-term holders, Bitcoin acquired through ETFs will be reclassified as long-term holdings starting June 15. This shift could offer alternative yet encouraging insights into investor behavior and interest.
At the time of this report, BTC is trading at $71,200 following a 5.5% increase over the past week. With the current prices, the cryptocurrency is only 3% away from its previous all-time high of $73,730 in March.
With the involvement of ETFs, long-term holders, short-term holders, and network growth driven by the recent halving event, experts are confident that BTC could reach $100,000 by the year’s end. Additionally, investor expectations of potential rate cuts following the Federal Reserve meeting next week and the upcoming US elections could further influence the cryptocurrency’s price. Donald Trump, a leading candidate in the presidential race, has expressed support for Bitcoin and the crypto industry, hinting at potentially favorable regulations that could boost token prices.
As reported by CNF, Trump’s interest in utilizing crypto to address US debt concerns could lead to positive developments for the industry if he wins the election.