BTC Holders Accumulating BTC Once Again Following Six-Month Sell-Off
2 min readBTC holders appear to be accumulating more BTC (BTC), following the recent rally, which saw long-term holders decreasing their position sizes.
According to on-chain data and intelligence platform Glassnode, long-term BTC holders have begun accumulating the cryptocurrency once again. Previous data indicates that long-term holders had been selling or decreasing their position sizes since October 2020.
Long-term #BTC hodlers are increasing their position size for the first time since price broke above $12,000. pic.twitter.com/5bbQ7GbZfB
— Documenting BTC
(@DocumentingBTC) April 15, 2021
(@DocumentingBTC) The decrease in holdings began once BTC had crossed the $12,500 mark. This accelerated and reached a peak in mid-January 2021. Likely around the time BTC broke $40,000.
The offloading continued until the beginning of April, and it now looks like long-term BTC holders are accumulating the digital asset once again.
BTC’s consistent bullish momentum
The reason for the shift from decreasing position size to increasing position size is likely due to BTC’s consistent bullish momentum. It is likely that BTC may not see a major dip back down below $40,000. This would mean holders are looking to get back into BTC before it continues to climb in price.
BTC has seen an impressive 400% gain in price since the sell-off began, climbing from $12,500 up to its recent high of $64,800.
BTC has recently hit a new all-time high, garnering fresh speculation that the cryptocurrency could hit $100,000 sooner than expected.
With the current bull market seeing huge gains across the board, bullish sentiment for BTC has never been this strong. Cryptocurrency adoption is reaching new levels as U.S. cryptocurrency exchange Coinbase recently listed publicly on the Nasdaq, making it the first cryptocurrency-centric company to do so.
The evaluation of the company makes it one of the biggest in the market based on share price.
However, while long-term holders of BTC may be accumulating once again, data suggests that BTC dominance is on the decline. The rapid decline in dominance will see traders moving their funds into altcoins and other major caps.
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