Amid a recent 14.4% drop in Bitcoin's value over the past month, long-term holders are maintaining their positions, showing confidence in the cryptocurrency's future growth.
Long-Term vs. Short-Term Holders
According to CryptoQuant data, long-term Bitcoin holders are not contributing to significant selling pressure. The Inactive Supply Shift Index indicates that these holders are maintaining their positions, suggesting belief in upward market trajectory. Conversely, short-term holders are experiencing losses, with the realized price at about $92K. This difference in strategies and outlooks highlights diverging perspectives within the Bitcoin community.
Market Analysis
CryptoQuant's analysis reveals a decrease in selling activities, evidenced by a decline in the Fund Flow Ratio. Fewer funds are entering exchanges, indicating reduced selling pressure. Furthermore, the decline in the Stock-to-Flow ratio from 43k to 42k over the past week suggests reduced supply with constant or increasing demand, typically leading to price increase.
Future Prospects for Bitcoin
With the ongoing tug-of-war between buyers and sellers, Bitcoin's price could remain within the $82k-$87k range. However, a breakout above this level might push Bitcoin toward $92k, matching the realized price for short-term holders.
Long-term holders continue to have faith in Bitcoin's potential despite current volatility. The shift from short-term to long-term holder dominance may signal stabilization or a new growth phase.
