The Bitcoin market is witnessing a notable shift as long-term holders, commonly dubbed “smart money,” seem to be pulling back on their sales. Since September, these investors have divested over 1 million BTC, raising speculation that the ongoing market decline may be nearing its end.
How Do Long-Term Investors Impact Bitcoin?
Typically, long-term Bitcoin holders buy during downturns and sell when prices rise. On average, they retain their BTC for more than 155 days, influencing market movements significantly.
According to reports, their BTC holdings plummeted from 14.2 million in September to 13.1 million by January, although the rate of sales has softened in early 2024.
Is Bitcoin Gaining Ground at $100,000?
As these long-term strategies evolve, Bitcoin has recently crossed the critical threshold of $100,000, establishing it as a key support level. Despite minor fluctuations, it has managed to hold this value since January 17.
Even with the market volatility caused by external political events, the reduction in sales pressure from long-term holders suggests that Bitcoin may have found a stable footing, potentially paving the way for a more robust market environment.
– Long-term selling by investors is slowing down significantly.
– Historical trends indicate that reduced selling often marks market stability.
– Bitcoin’s recently established support level could signal positive market momentum.
The current activity among long-term Bitcoin investors points to a shift that could stabilize the market, leading to new opportunities for growth. As patterns from previous years indicate, their commitment to holding might be the key to a more resilient Bitcoin landscape moving forward.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/long-term-bitcoin-holders-adjust-strategies