The leading cryptocurrency Bitcoin (BTC) made its first rise since 2016 in September. One of the reasons for the upward movement may be the observed change in favor of long-term holders. Here is the current data on Bitcoin holders!
ETF Prospects in Bitcoin!
The idea that Bitcoin’s performance in September could be the beginning of a long-term bull trend may not be a far-fetched possibility. The cryptocurrency is now closer than ever to Bitcoin ETF approval, experts say, and the outcome could pave the way for a major demand shock due to increased liquidity. A shift from short-term profit making to long-term profit making may be one of the first signs of this.
The stated bullish expectations reflect the views of CryptoQuant analyst Yonsei_dent. According to the expert’s analysis, it was revealed that Bitcoin has been experiencing low selling pressure recently. Additionally, the number of long-term Bitcoin holders is increasing. This may coincide with the recently observed bullish momentum. The analyst said the following about the current state of the market:
If you look at the exchange holdings provided by CryptoQuant, you can see that they fell during the FTX event in November 2022 and have been in decline ever since.
Possible Consequences of the Increase in BTC Holders!
Foreign exchange reserves have been decreasing steadily since May. One possible reason for this observation could be concerns about centralized exchanges and their increasing popularity. Additionally, transfers from exchanges to private custody wallets are also consistent with long-term forecasts. So how can we verify that Bitcoin is indeed preferred by long-term holders? Long-term holder supply is increasing steadily. This could mean that long-term investors are still not contributing much to the selling pressure.
Bitcoin’s long-term holder position reversal reversed on September 17 after previously rising since July. The decline in long-term position change indicated that we may see less pressure to take short-term profits. The changing preference for holders, combined with slowing sales pressure, may pave the way for accumulation. But the expected demand shock isn’t here yet, and there may still be time for whales to shake up the market again before the inevitable bull market kicks in.