Glassnode data indicates that short-term holders are displaying increased confidence in the future of Bitcoin (BTC) by adding one million to their holdings.
While long-term and large holders typically set the tone for trends, short-term holders could have a significant impact on the immediate direction of the digital asset.
Bitcoin (BTC) has been demonstrating notable resilience 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. According to Glassnode, short-term holders have significantly boosted their BTC holdings, increasing from 2.2 million BTC in January to over 3.4 million BTC by mid-April. This represents an addition of approximately one million in just six months.
This increase sets a positive tone for BTC, with short-term investors shaping the short-term price trajectory for the digital asset. This trend is not surprising, as short-term holders have historically taken a bullish stance before a bull run. It also indicates a rise in engagement, potentially signaling an influx of new investors. Interestingly, US spot Bitcoin ETF wallets are categorized as short-term holders and have played a significant role in the impressive growth.
The involvement of these holders has historically led to high volatility, with many opting to cash out once BTC prices surge to potential new all-time highs.
This new trend is expected to have a ripple effect on other market participants, starting with long-term and institutional/large holders. The optimistic outlook of short-term holders forms the basis of a broader market bullish sentiment.
For newcomers who entered the market through Bitcoin spot ETFs, this trend could serve as a catalyst for continued accumulation. While Bitcoin ETF wallets are currently considered short-term, as of June 15, the Bitcoin acquired by ETFs will be reclassified as long-term holdings. This could provide different yet still positive insights into investor interest and behavior.
As of the current writing, BTC is trading at $71,200 following a 5.5% surge in the past week. At this price point, the digital asset is only 3% below 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 about the digital asset reaching $100,000 by the end of the year. Additionally, investor anticipation of rate cuts following the Federal Reserve meeting next week is further boosting confidence.
The upcoming US elections could also have a significant impact on the asset’s price. Presidential candidate Donald Trump, who is currently in the lead, has expressed support for Bitcoin and the crypto industry. Reports suggest that Trump has enlisted experts to explore using crypto to address US debt. If Trump emerges victorious, experts predict more favorable crypto regulations that could benefit the industry and token prices.
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