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The leading cryptocurrency, Bitcoin (BTC), experienced its first significant rise since 2016 in September. One of the reasons behind this upward movement could be attributed to a shift observed in favor of long-term holders. Here are the latest data on Bitcoin holders!
Expectations for Bitcoin ETF
The idea that Bitcoin’s performance in September could mark the beginning of a long-term bullish trend is not far-fetched. According to experts, the cryptocurrency is now closer than ever to receiving approval for a Bitcoin ETF, which could lead to a significant demand shock due to increased liquidity. The transition from short-term profit-taking to long-term profit-making could be one of the first signs of this shift.
These bullish expectations reflect the views of CryptoQuant analyst Yonsei_dent. According to the analyst’s analysis, Bitcoin has recently experienced low selling pressure, and the number of long-term Bitcoin holders is increasing. This situation could align with the observed upward momentum. The analyst commented on the current state of the market:
If you look at the foreign assets provided by CryptoQuant, you can see that they dropped during the FTX event in November 2022 and have been declining ever since.
Possible Implications of the Increase in BTC Holders
Foreign reserves have been steadily declining since May. One possible reason for this observation could be concerns about centralized exchanges and their increasing popularity. Additionally, transfers from exchanges to private storage wallets are consistent with long-term projections. So, how can we confirm that Bitcoin is indeed preferred by long-term holders? The supply of long-term holders is steadily increasing. This suggests that long-term investors may not be contributing significantly to the selling pressure.
The change in Bitcoin’s long-term holder position reversed on September 17 after rising since July. The decrease in long-term position change indicated that there could be less pressure for short-term profit-taking. The changing preference among holders, combined with the slowing selling pressure, could pave the way for accumulation. However, the expected demand shock is not yet here, and there may still be time for whales to shake the market again before the inevitable bull market sets in.
