Following Donald J. Trump's victory as the 47th President of the United States, both Bitcoin and stocks saw a surge. However, unforeseen market challenges have emerged with the decrease in short-term trader interest.
Short-Term Holder Activity Declines
According to IntoTheBlock data, the amount of Bitcoin held by short-term traders has hit its lowest point since mid-November 2024. Analysts attribute this trend to declining interest from speculative traders and a reduction in new market entrants. The SOPR index for short-term holders indicates a move from profit-taking to loss realization.
Long-Term Investors Ease Selling Pressure
Bitcoin holdings among long-term investors have seen a decrease in selling activity, with the net position change reaching −827,000 BTC, indicating a threefold reduction in selling pressure. Experts note that less selling even as Bitcoin's price trends downward might be a positive signal if long-term holders return to accumulation.
The Market's Bull-Bear Race
Current data shows Bitcoin is challenging its short-term resistance at $95,000. While major market players remain cautious, low whale activity aligns with bearish sentiment. The short-term supply exceeds demand, applying pressure on Bitcoin's price and pointing to potential declines in upcoming weeks.
The market dynamics for Bitcoin remain complex, with conflicting signals from short-term and long-term investors. As the market awaits clearer signals for a trend change, participants remain wary, closely watching price movements.
