Short-Term Bitcoin Holders Are Ones Who Control Market Now, Here’s Why

AnalysisShort-Term Bitcoin Holders Are Ones Who Control Market Now,...


Contents

With the rapid growth of the cryptocurrency market in 2021, the composition of Bitcoin holders has greatly changed, and the market faced a major wave of new retail traders and investors who, for now, control the price of the cryptocurrency.

Holder composition is changing

According to Blockware lead analyst Will Clementine, the short-term holder supply has reduced significantly, which could be a reason for the almost complete absence of both selling and buying volumes on the market.

Previously, Three Arrow Capital founders shared data on the share of U.S. citizens that own cryptocurrency. As the data suggests, 20% of all U.S. adults and 61% of all millennials with incomes over $100,000 report holding cryptocurrency. With such a large number of citizens holding some form of digital assets, the next wave of retail traders that enter the market might be the last “fresh funds” income.

Long-term holders

As for long-term holders, the movement of the supply on wallets that hold Bitcoin or other cryptocurrencies for more than 155 days usually stays relatively low and does not affect the market – compared to short-term holders who move their assets actively.

During a “weak” market cycle when the majority of assets on the market enter a correction phase, the long-term holdings tend to increase as more whales prefer holding or accumulating funds. As the analyst suggests, the increase in the long-term supply also increases due to the majority of new traders preferring to hold through correction cycles.

At press time, Bitcoin is trading at $43,440 and going through a 1% drop following another risk-off cycle on global financial markets.



Learn more

Latest news

Australian Crypto Exchange Swyftx Cuts 90 Jobs Amid Crypto Winter

The job cuts would equate to a reduction of almost 45% of Swyftx's workforce. Learn more

Bitcoin Sinks Further 70% in Standard Chartered List of Possible 2023 Upsets

(Bloomberg) -- Speculators cleaving to the view that the crypto rout is mostly over are at risk of...

Australian Crypto Exchange Announces Massive Layoffs

Alex Dovbnya Swyftx has fired more than a third of its staff, with the ongoing cryptocurrency winter becoming increasingly...

Ripple Price Analysis: Bears Active Near $0.40

Ripple price started a fresh decline from the $0.4100 resistance against the US dollar. The price is now trading...

How Secure Is Social Security?  

The long-term funding shortfall threatening Social Security has garnered so much public notice that consistently overwhelming majorities of...

CRO Price (Cronos) Pumps Over 12%, Why This Could Be The Start of Bigger Rally

CRO price started a fresh increase from the $0.062 support zone. Cronos bulls are now aiming a strong...

Must read

Australian Crypto Exchange Swyftx Cuts 90 Jobs Amid Crypto Winter

The job cuts would equate to a reduction...

Bitcoin Sinks Further 70% in Standard Chartered List of Possible 2023 Upsets

(Bloomberg) -- Speculators cleaving to the view that...

Australian Crypto Exchange Announces Massive Layoffs

Alex Dovbnya Swyftx has fired more than a third...

You might also likeRELATED
Recommended to you