- Short-term holders started accumulating large amounts of BTC.
- BTC accumulation by whales has slowed down.
Bitcoin [BTC] Prices have risen significantly over the past few days, sparking optimism among traders. However, traders were not the only ones expressing optimism regarding BTC.
Short-term holders move in
Over the past few days, the supply of short-term holders (STH) has seen a net increase of over 20,000 Bitcoins.
Even accounting for outflows from the Hong Kong ETF, the US ETF accumulated 11,000 Bitcoin over the same period. This suggests significant demand from other sources as reflected in price movements.
This increased demand from STH creates a positive feedback loop. As more people buy, the price goes up, attracting more buyers. This could accelerate price increases.
However, it is important to remember that STH is typically likely to be sold quickly when the price drops, which can lead to high volatility.
Therefore, while STH accumulation is a positive sign for Bitcoin’s short-term momentum, it could impact BTC’s long-term growth.
Source: Glassnode
What does the holder do?
Another indicator of an increase in the number of short-term holders is the decline in the long/short ratio. The decline in the long/short ratio suggested that the number of long-term holders accumulating BTC was decreasing.
These long-term holders are likely to maintain their holdings even during wild price fluctuations, which could also negatively impact BTC in the long run.
BTC’s MVRV ratio has skyrocketed over the past few days, indicating that a large number of addresses holding BTC have made profits.
This could increase selling pressure on BTC as STH could be incentivized to sell its holdings for profit.
Source: Santiment
Whale behavior will also play a large role in determining future BTC prices. Whales’ BTC accumulation has been stagnant in recent days.
Although they have not sold any of their holdings, they have not shown any interest in accumulating Bitcoin at this price level.
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Meanwhile, individual traders have been observed buying Bitcoin en masse, which may also be a contributing factor to the recent spike in Bitcoin prices.
At the time of writing, BTC was trading at: $67,110.39 And its price increased by 1.17% in the past 24 hours.
Source: Santiment
