A new report by cryptocurrency analysis firm IntoTheBlock reveals that long-term holders of Bitcoin are not selling their coins despite the recent rally that pushed the price above $30,000.
Unlike previous rallies, this rally was not driven by the influx of new short-term traders, but rather by the persistent accumulation of long-term traders.
According to IntoTheBlock, the amount of BTC held by short-term coin holders (those who have held their coins for less than 12 months) is currently lower than before the 2021 bull rally and continues to decline. This indicates that most of the selling pressure is being absorbed by long-term holders who do not want to sell their coins at these levels.
The report also points out that the increase in short-term coin holders has often coincided with rising prices in the past, as new entrants hope to catch up with this momentum.
However, this is not the case in the recent rise in the BTC price from around $ 15,000 to $ 30,000; This rise is driven mostly by institutional and high-net-worth investors seeking protection against inflation and devaluation.
This contrasts with the 2019 rally, where Bitcoin's return to $11,000 led to a significant spike in short-term holders and sold their coins during the subsequent correction.
*Not investment advice.