Glassnode data indicates that short-term holders are growing more optimistic about the future of Bitcoin (BTC), increasing their holdings by one million.
While long-term and large holders typically set the tone for the market, short-term holders could play a significant role in the immediate price action of the digital currency.
BTC has been demonstrating strength as it nears its all-time high. Recent data from Glassnode suggests that short-term holders may be driving the surge in BTC prices. According to Glassnode, short-term holders have significantly boosted their BTC holdings, rising from 2.2 million BTC in January to over 3.4 million BTC by mid-April, marking an increase of around one million in just six months.
This development paints a bullish picture for BTC, with short-term investors influencing the short-term price movement of the cryptocurrency. This behavior is consistent with historical trends, as short-term holders tend to take a positive stance before a bull market. It also indicates a rise in activity, potentially attracting new investors. Notably, US spot Bitcoin ETF wallets, categorized as short-term holders, have played a key role in this surge.
The engagement of these holders has previously led to high volatility, as many tend to cash out once BTC prices skyrocket to new highs.
This new trend is expected to impact other market participants, starting with long-term holders and institutional investors. The optimistic outlook of short-term holders serves as the foundation for positive sentiment across the market.
For newcomers entering the market through Bitcoin spot ETFs, this trend could encourage continued accumulation. While Bitcoin ETF wallets are currently classified as short-term holders, they will be reclassified as long-term holders starting June 15. This shift could offer varying yet positive insights into investor behavior and interest.
At the time of writing, BTC is trading at $71,200 following a 5.5% increase over the past week. The digital currency is now 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, experts are confident that BTC could reach $100,000 by the end of the year. This bullish sentiment is further supported by expectations of rate cuts by the Federal Reserve later this year.
The upcoming US elections could also have a significant impact on BTC’s price. Leading presidential candidate Donald Trump has expressed support for Bitcoin and the crypto industry. Reports suggest that Trump has sought advice from experts on leveraging crypto to address US debt. If Trump wins, experts anticipate more favorable regulations that could boost the industry and token prices.
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