Bitcoin sees a surge in short-term investors 

A recent Bitfinex Alpha report shows a shift in Bitcoin ownership. While short-term investments are increasing due to the popularity of spot Bitcoin ETFs, long-term investors remain confident in the market.

There has been a notable shift in Bitcoin (BTC) ownership in the crypto market recently, especially among short-term holders.

Short-term Bitcoin investors, i.e. those who typically hold Bitcoin for less than 155 days, have significantly increased their activity. Its total assets rose from 2.2 million BTC in January to over 3.4 million BTC in mid-April; that’s an increase of almost 55%.

This rise is mainly linked to the increasing influence of spot Bitcoin ETFs.

Short-term and long-term owners

According to the report, the increase in the number of short-term holders indicates a strong level of investment in BTC due to the launch and growing popularity of spot Bitcoin ETFs. This concentration of short holdings near the current market price indicates significant investment activity at this particular price point. But short-term holdings can also lead to vulnerabilities and price fluctuations, leading to potential risks or price declines.

This number of short-term holders is constantly increasing as new players enter the market and buy Bitcoin. However, since the old coins are distributed, the price remains the same. The market is still resetting, and just as $10,000 became the bottom in 2020, the $60,000-$70,000 price point will become the new bottom for BTC.

It looks like we still have a bulge from last cycle.

Short-term holders noticed that the price was steadily increasing as new players entered the market and bought #Bitcoin. Hedge funds, Pension Funds, Banks etc.

However, the price does not increase because old coins are distributed.

We… pic.twitter.com/VxaXozgANT

—Thomas | heyapollo.com (@thomas_fahrer) June 12, 2024

The supply held by short-term holders currently stands at approximately 3.3 million BTC, which is a slight decrease from the peak in mid-April. This decline is due to the market correction that occurred in March after Bitcoin reached an all-time high.

Bullish sentiment for long-term BTC holders

On the other hand, long-term Bitcoin holders are showing a remarkable show of confidence in the market. After Bitcoin reached its all-time high of $73,666 in March, many long-term BTC holders sold significant amounts of BTC.

Recent data shows that the trend of selling Bitcoin has stopped and instead long-term holders are now starting to accumulate Bitcoin. The amount of Bitcoin investors have held has remained virtually unchanged for over a year, indicating that these investments are being held rather than actively traded.

STH reached the break-even point with the latest developments $BTC immersion, marking a potential reaction zone.

The intensity of the reaction is uncertain, but long-term ones may remain stable.

Analyzing Bitcoin and STH together points to a short-term bottom likely to form this week. pic.twitter.com/IVgTHcWBOZ

— Kyledoops (@kyledoops) June 11, 2024

Additionally, only 0.03% of the supply held by long-term investors consists of coins purchased at prices higher than the current spot price. In the early stages of a bull market, it is common to see long-term investors holding profitable positions.

Bitcoin whales are also accumulating Bitcoin at a pace reminiscent of the pre-2020 bull run, leading to a new historical high in Bitcoin balances.