Glassnode data has revealed that Bitcoin long-term holders are taking advantage of the cryptocurrency’s lower price to significantly increase their holdings. This accumulation further strengthens the belief that this group of Bitcoin investors anticipate a potential upside for Bitcoin despite its recent volatility.
Long-Term Holders Pay $4.3 Billion For 70,000 BTC
According to Glassnode, long-term Bitcoin holders who had previously sold 1 billion BTC in the latter part of 2023 are accumulating once again. This buying activity could be interpreted as a potential bullish signal for Bitcoin.
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Traditionally, Bitcoin long-term holders sell their holdings during peak prices and buy new tokens during periods of correction or substantial declines. When these seasoned investors buy cryptocurrencies during market lows, it usually indicates their expectations of a potential rebound, leading to profits.
On the other hand, short-term holders are known to buy cryptocurrencies during sporadic price surges, often signaling that a cryptocurrency is nearing its peak.
With Bitcoin presently stabilizing above $61,000, long-term Bitcoin holders probably see the cryptocurrency’s value as a prime buying opportunity. They have recently added a staggering 70,000 BTC valued at over $4.3 billion to their holdings.
This sentiment for Bitcoin’s potential rally is also shared by a few crypto analysts who have predicted that the cryptocurrency would surge to new all-time highs during the approaching bull market. Earlier in March, before Bitcoin’s halving event, the cryptocurrency skyrocketed above $73,000, marking a new historic all-time high.
With the bull market still on the way, Bitcoin could see further upsides as market conditions improve and investor demand rises. This could potentially lead to profits for long term holders who had purchased the cryptocurrency earlier.
Moreover, the upcoming United States inflation report, set for release on May 15, could also be another primary factor driving long-term investors’ substantial BTC accumulation. With the US Consumer Price Index (CPI) remaining historically high, and the Federal Reserve (FED) unchanged rates, Bitcoin is seen as a possible hedge against inflationary pressures, protecting investors’ wealth against decline.
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