According to CoinTelegraph, amid the recent market pressure that pushed the price of Bitcoin below $109,000, analysts pointed out that long-term holders are quietly making their moves and accumulating Bitcoin.
CryptoQuant analyst Amr Taha expressed his opinion on May 26th, stating that during this market turmoil, overly leveraged short-term traders have been liquidated one after another. Due to the sharp fluctuations in market prices, these short-term traders are faced with the predicament of insufficient margin and can only helplessly force them to sell the Bitcoins they hold to meet the margin requirements. In sharp contrast, long-term holders have seized opportunities during the market reset process and secretly reaped profits.
With the selling spree by short-term traders, the supply of Bitcoin in the market has increased in the short term, putting further pressure on the price. However, long-term holders, relying on their long-term optimism about the market and sufficient capital reserves, did not panic and sell off due to short-term price drops. On the contrary, they seized the opportunity of the price correction and continuously increased the holdings of Bitcoin in their hands. This action directly led to a significant increase in the realized market value of long-term holders, which has now exceeded 28 billion US dollars, reaching a high level not seen since April.
From the perspective of past market cycles, the operation strategies of long-term holders during market fluctuations are often forward-looking. For instance, before the price of Bitcoin rose sharply in early 2024, the market also went through a period of volatility. During that time, long-term holders continued to increase their holdings, and then the price of Bitcoin soared all the way, reaping rich rewards. When the price of Bitcoin dropped below $109,000 this time, long-term holders took active actions again, indicating that they still have full confidence in the subsequent trend of the market.
Long-term holders are usually not swayed by short-term price fluctuations and they pay more attention to the long-term value of Bitcoin. As the leader in the cryptocurrency field, Bitcoin’s decentralized and constant total amount characteristics make it have unique investment value. Against the backdrop of an unstable global economic environment and increasing inflationary pressure, Bitcoin is regarded by many investors as a safe-haven asset and a store of value. Long-term holders firmly believe that the value of Bitcoin will continue to stand out over time, and thus they buy firmly when the market corrects. Short-term traders, on the other hand, often aim to gain short-term price differences and overly rely on leveraged trading. Once the market trend goes against expectations, they are prone to suffer huge losses. During this market adjustment, the liquidation by short-term traders has created an opportunity for long-term holders to buy shares at a low price. The “quiet profits” of long-term holders also reflect the significant differences in how different investment groups in the cryptocurrency market respond to market fluctuations.
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