Bitcoin begins the year with significant shifts in ownership structure as long-term holders reduce some of their positions.
Current Changes in the Bitcoin Market
As Bitcoin surged to $108,000, some long-term holders decided to realize gains, leading to a shift in ownership. New wallets aged under three months show growth in assets held by younger cohorts. In December, there was a balance shift, but only a small portion of BTC changed hands, which nonetheless creates selling pressure in case new buyers panic.
Short-Term and Long-Term Bitcoin Holders
The past weeks revealed a shift between long-term and short-term holders, a move that previously signaled a local market top. Short-term investors continue to accumulate, maintaining market confidence. The average cost basis for all holders rose to over $40,000 by the end of 2024.
Impact on Price and Holder Strategy
Active buyers included unknown whales, ETF deals, and purchases by MicroStrategy and Mara Holdings. The 'new holder wave,' with wallets younger than six months, shows a rapid climb in reserves. Some are already in profit, with an average unrealized gain of 10%.
Bitcoin remains in an accumulation zone, and despite rising average cost levels, the current dual holder trajectory suggests potential for a continued bull market in Q1.
