A recent report by Bitfinex Alpha reveals a change in Bitcoin ownership trends in the crypto sphere. Short-term investors are experiencing growth, fueled by the uptrend of spot Bitcoin ETFs, while long-term holders maintain a strong belief in the market.

In recent times, a significant transformation in Bitcoin ownership patterns, particularly among short-term holders, has been evident. These investors, defined as those holding Bitcoin for shorter than 155 days, have notably increased their involvement. Between January and mid-April, the cumulative Bitcoin holdings of short-term investors surged from 2.2 million BTC to over 3.4 million BTC, marking an impressive 55% rise.

This surge in short-term investor engagement is closely linked to the rising influence of spot Bitcoin ETFs.

Short-term vs. Long-term Holders

The escalation in short-term holders signifies a considerable level of investment in BTC, encouraged by the introduction and growing popularity of spot Bitcoin ETFs. The clustering of these brief asset holdings around the prevailing market price points to significant investment activity at this specific price level. However, the presence of short-term holders introduces susceptibility to price fluctuations and potential risks or declines in price.

The count of short-term holders is gradually escalating as new participants join the market to acquire Bitcoin. Despite this influx, the price remains stable due to the distribution of older coins. The market seems to be undergoing a reset, where the price bracket of $60,000-$70,000 is anticipated to set a new BTC baseline, reminiscent of how $10,000 served as a foundation in 2020.

The supply held by short-term holders currently stands at around 3.3 million BTC, slightly lower than the peak recorded in mid-April, attributed to the market correction post the historic Bitcoin high in March.

Bullish Sentiment among Long-term BTC Holders

In contrast, long-term Bitcoin holders are showcasing a remarkable sense of assurance in the market. Following Bitcoin's attainment of a new all-time high of $73,666 in March, numerous long-term holders divested significant portions of their BTC.

Recent data indicates a cessation in the trend of Bitcoin selling by long-term holders, with an evident shift towards accumulative behaviors. The volume of Bitcoin held by investors for over a year has remained relatively constant, signaling a preference to hold these investments rather than actively trade them.

Furthermore, only about 0.03% of the supply controlled by long-term investors comprises coins purchased at prices surpassing the current spot price. In the early stages of a bull market, it is common to observe long-term investors retaining their profitable positions.

Bitcoin whales are also increasing their Bitcoin accumulation rate, reminiscent of the pre-2020 bull run, leading to a new historical pinnacle in their Bitcoin balance.