The price of Bitcoin has been very high in the past few months. Despite increasing market volatility, the world’s largest crypto asset has been volatile and rising. In the past week, Bitcoin reached its highest point of approximately $61,000.
At the time of writing this report, the transaction price of Bitcoin was $58,722, which has risen by more than 6% in the past 24 hours.
However, based on the overall short-term bullish sentiment of the Bitcoin market and its long-term outlook, how did different market participants react to price increases?
The community of holders is of great significance to the long-term price changes of Bitcoin.
According to the data provided by Glassnode, Bitcoin held for no more than 3 months is being traded. What is interesting is that the cryptocurrency with the highest trading liquidity in the past few months has been newly issued, and data shows that more than 95% of cryptocurrencies have been produced in less than three months.
If Bitcoin is to achieve the goal of $100,000 in value in 2021, then the confidence of the holders in Bitcoin is crucial. In fact, Glassnode also pointed out the nuances between long-term and short-term investors in Bitcoin.
Glassnode pointed out in a recent report, “The current demand from short-term holders is still strong, and long-term holders are gradually selling bitcoin at a slow rate. However, the important thing is that long-term holders still hold a lot of Bitcoin, this is good for holders to trade.”
Compared with the situation when Bitcoin prices soared in January, long-term holders did not carry out arbitrage to a large extent . Market data shows that changes in Bitcoin’s net position remain at a negative value of around -200K.
However, in the early stages of the volatility around January, the data remained at around -800K, indicating that hoarders are realizing.
The fact that the old account has seen a lower net value change further shows that the bullish sentiment of the holders in the market is very strong, and even short-term fluctuations in Bitcoin are unlikely to push the price of Bitcoin in the downward direction.
This also shows that if there is a price adjustment in the market, cryptocurrencies will have the ability to fluctuate and rise.
A few days ago, the price of Bitcoin fell to a level below USD 55,000, but eventually rebounded and returned to a price position close to USD 60,000. It is not difficult to see how surprising the volatility of the BTC market is.
BitPrime pointed out that although the volatility dropped sharply at the beginning of this month, it continues to climb again now, and is currently about 4.46%.
Although the reasons for holding Bitcoin are as persuasive as ever, the giant whales currently in capital enter the market and profit from it. According to Santiment, when the price of Bitcoin fell earlier this week, activity from large addresses was unusually frequent.
Within three weeks, approximately 23,478 transactions worth more than $100,000 were completed in the Bitcoin system. What we want to pay attention to is that if $100,000 is to be a credible goal at the end of the year, then Bitcoin needs large accounts to accelerate the realization of its highest price in history.
The original text comes from ambcrypto, compiled by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.