Bitcoin Approaching All-Time High, Yet Long-Term Investors are Holding Firm
Reasons for Confidence
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Recent on-chain statistics indicate that even with Bitcoin (BTC) nearing its historical peak, long-term holders (LTHs) are not liquidating their assets. In fact, these investors continue to buy more of the largest cryptocurrency by market cap, showing their belief in potential price increases in the near future.
Long-Term Bitcoin Holders Are Holding Steady
A recent contribution from CryptoQuant highlighted by ShayanMarkets emphasizes that profit-taking among long-term holders is quite minimal, despite Bitcoin being close to its all-time high. Traditionally, when Bitcoin nears its previous peaks, profit-taking activity tends to surge as investors aim to secure their benefits. However, this trend appears to be shifting in the current market landscape.
Additional Insights
The analyst pointed out that when Bitcoin stabilizes close to its all-time highs, it usually leads to considerable profit taking by market players. Nonetheless, the current evidence suggests that LTHs—those owning BTC for over 150 days—have not initiated significant profit-taking.
Particularly, the LTH Spent Output Profit Ratio (SOPR) is trending downward even as BTC steadily approaches a new ATH nearing $109,000. The analyst elaborated:
This drop indicates that long-term holders are not partaking in significant profit realization. Instead, they seem to be acquiring more, which reflects confidence in higher price projections and an expectation of new all-time peaks.
Ultimately, the current phase of BTC’s consolidation appears to be primarily led by short-term holders (STHs) and retail participants. Historical trends show that these groups tend to react quickly to market fluctuations, responding nimbly to both rises and drops in price.
The analyst also mentioned that Bitcoin is poised to revive its upward trend following this period of consolidation. Should past patterns repeat, the next surge could take BTC to unprecedented heights in the medium term.
Insights from another CryptoQuant contributor, BlitzzTrading, further align with this perspective. BlitzzTrading noted that BTC whales—those wallets that hold substantial quantities of Bitcoin—are realizing profits much less than they did in earlier bull runs.
This trend indicates a long-term investment approach among whales, making them more akin to LTHs, as they tend to hold their assets through market fluctuations, in contrast to smaller holders who typically engage in more frequent trading.
BTC Could Mirror Gold’s Historical Trends
Interestingly, parallels are being drawn between Bitcoin and gold. Over the past two years, gold has shown remarkable increases, climbing from approximately $1,800 per ounce in mid-2023 to around $3,200 per ounce today—a close to 75% rise.
Additional Insights
Crypto analyst Cryptollica recently highlighted that BTC may replicate gold’s trajectory and experience similar momentous growth in 2025. The forecast suggested that BTC could soar to as much as $155,000 this year.
Moreover, the Bitcoin Bull-Bear Market Cycle indicator is signaling continued bullish potential for the leading cryptocurrency. At the moment, BTC is priced at $101,852, having experienced a decline of 1.5% over the last day.
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