Bitcoin has recently surpassed the $100,000 mark, sparking interest from traders to take profits. However, long-term holders, those who have kept their Bitcoin for at least seven years, are not selling yet. A recent analysis highlights that this group remains confident in the Market, as previous selling patterns from long-term holders occurred before major price drops in past rallies. While some inflows to exchanges have been noted, they are not as significant as during Bitcoin’s last all-time high in November 2021. In contrast, stablecoins like USDT and USDC have seen substantial growth, indicating positive sentiment for continued Bitcoin and altcoin bullish trends.
With Bitcoin (BTC) now comfortably above $100,000, many traders are contemplating taking profits from this impressive crypto surge. However, an on-chain analysis by CryptoQuant reveals that long-term Bitcoin holders, who have kept their investments for at least seven years, are still holding tight and not dumping their assets onto exchanges.
The data shared by a CryptoQuant researcher, known as Crypto SunMoon, suggests a significant difference compared to past Market cycles. During the 2017-2021 bull run, long-term holders began selling their BTC just as the rally was winding down. Currently, the data implies that we have not reached that sell-off point, which could indicate sustained bullish sentiment in the Market.
Notably, the last major crypto inflow to exchanges from long-term holders was recorded in late Q1 2024. However, the volume was significantly lower than what we saw during Bitcoin’s all-time high in November 2021. This indicates that while some may feel the urge to sell, many are confident and choosing to hold.
Additionally, similar trends are observed among major altcoins. More than 70% of both Ethereum (ETH) and Litecoin (LTC) holders have held onto their investments for over a year, showing a broader trend of confidence in the ongoing crypto rally.
On another front, the metrics for stablecoins like USDT and USDC are also showing promising signs for Bitcoin bulls. Over the last three months, the supply of USDT on centralized exchanges surged by 40% to a new record of over $43 billion. The overall supply of stablecoins has risen significantly, increasing from $160 billion to $224 billion since early November 2024.
This growth in stablecoin supply is interpreted as a positive indicator for a sustained bull Market for Bitcoin and major altcoins, as investors seem to be positioning themselves for future growth in the crypto space.
Tags: Bitcoin, BTC, long-term holders, crypto rally, stablecoins, Market analysis, Ethereum, Litecoin
What does it mean when Bitcoin holders have “diamond hands”?
“Diamond hands” refers to Bitcoin holders who strongly believe in the future value of their investment. This means they hold on to their Bitcoin even during Market ups and downs, showing strong confidence in their choice.
Why are diamond hands sending bullish signals for Bitcoin?
When many people show diamond hands by not selling, it can indicate strong support for Bitcoin. This can lead to an increase in demand, pushing prices higher, which is considered a bullish signal in the Market.
How can diamond hands affect Bitcoin’s price?
When holders refuse to sell, the supply of Bitcoin available in the Market decreases. If demand stays the same or increases, this can lead to a rise in the price of Bitcoin. So, diamond hands can help create a bullish Market trend.
Is holding Bitcoin with diamond hands a good strategy?
For many investors, holding Bitcoin with diamond hands can be a good strategy if they believe in its long-term growth. However, it also means you’ll need to be patient during Market fluctuations and resist the urge to sell.
What tips can help people become diamond hand holders?
To become a diamond hand holder, consider these tips:
– Research Bitcoin thoroughly to understand its potential.
– Set personal goals for your investment and stick to them.
– Remember that Market swings are normal; focus on the long-term.
