Bitcoin, the largest cryptocurrency by market capitalization, reached $37,987 during Wednesday's trading session, coming close to its one-week high. Year-to-date, it has surged by almost 125%.
Bitcoin (BTC) and a variety of other cryptocurrencies have rebounded to levels last witnessed a week ago, recovering nearly all the losses incurred during a $300 million liquidation event earlier in the week.
Bitcoin approached the $38,000 mark, a level last seen in May 2022, as part of an extended uptrend driven by expectations of increased demand for the leading cryptocurrency due to the emergence of exchange-traded funds.
Currently, the market is experiencing some profit-taking, with Bitcoin and other cryptocurrencies retracing their gains from the previous day.
At the time of writing, BTC had increased by 2.33% in the past 24 hours, reaching $36,942.
In a brief analysis, CryptoQuant identified interesting trends among Bitcoin holders as BTC prices surged in recent weeks.
The analysis examined the behavior of both long-term and short-term Bitcoin holders.
One notable pattern emerged: long-term holders are holding their positions, while short-term holders are selling off.
What's even more intriguing is that the Bitcoin sold by short-term holders seems to have been acquired by long-term holders. It's almost like a trade between these two groups, with long-term investors capitalizing on short-term market fluctuations.
Long-term holders appear to be using the recent volatile price swings in BTC to accumulate more Bitcoin. The MVRV indicator, which remains below two, suggests that long-term investors are not rushing to cash out.
