Long-term Bitcoin holders, referred to as 'diamond hands', may act as catalysts for a new price increase. With over 80% of Bitcoin in their hands, the market becomes more sensitive to demand.
Return of the 'Diamond Hands'
A recent tweet from crypto trader CrediBULL highlighted that more than 80% of Bitcoins are now held by long-term investors. This means that there is less supply available in the market, which can significantly increase prices with any rise in demand. CrediBULL points out that similar situations have occurred in the past when strong holding led prices to rise to $73K and beyond.
Treasury Companies Holding Bitcoin
The trend of public companies choosing to hold Bitcoin as a treasury asset instead of cash has contributed to decreasing supply on exchanges. Leading this trend is Strategy (formerly MicroStrategy), which holds over 597,325 BTC. Other companies, such as Marathon Digital Holdings and GameStop, have also begun accumulating Bitcoin in their treasuries.
What's Next for Bitcoin's Price?
Given the significant amounts of Bitcoin held by long-term investors and companies, CrediBULL suggests that the next price movement could exceed previous spikes. He believes Bitcoin could gain $50,000 or more, potentially surpassing $150,000 with increased demand.
Long-term holding strategies and the growing number of companies accumulating Bitcoin set the stage for potential significant price increases. Observing current trends, analysts predict possible historic highs.
