Periods similar to the ongoing SEC-induced FUD test the resilience of short-term holders – a cohort that is typically the first to flee as the price of crypto-asset tanks.
However, the latest data suggest that the movement of short-term Bitcoin holders depicted strong interest in staying in the market and gaining profitability.
- A CryptoQuant analyst stated that despite the lackluster in Bitcoin’s price, as it continued to remain trapped within the $25k-$30k range, the possibility for growth in its trajectory is not over yet. The blog post explained,
“According to the short-term holder SOPR metric, when the number 1 of this data maintains for consecutive months, and the pocket value of these holders moves above this level is a sign of a strong interest in staying in the market and gaining profitability. 2015 and 2019 price cycles are good examples.”
- As such, upon comparing the present cycle with 2019, the analyst noted that the profitability of long-term and short-term holders has not been high enough to trigger heavy selling pressure.
- Such a trend essentially suggests that Bitcoin has the potential to grow with another wave of demand.
- Further validating the short-term BTC holders’ resilience is data from Glassnode, which revealed an uptick in hodling activity by this group since the beginning of July after a period of active selling the previous month.
- Long-term Bitcoin holders were yet another cohort of market participants that have displayed remarkable resilience by focusing on holding their stash.
- It was found that only a very tiny fraction has transferred their tokens to centralized exchanges.