Amid ongoing regulatory scrutiny and fear, uncertainty, and doubt (FUD) surrounding Bitcoin (BTC), short-term holders are often known to be the first to sell their assets when prices fall have shown unusual resilience in the face of current market challenges.
According to the latest data these holders go against the trend and choose to stay in the market, indicating their confidence in Bitcoin’s future profitability.
Short term holders show resilience amid regulatory challenges
According to a analysis from CryptoQuant, Bitcoin’s lackluster price performance in the $25,000-$30,000 range has not dampened the enthusiasm of short-term holders. The Short-Term Holder Spent Output Profit Ratio (SOPR) metric reveals their interest in staying in the market and pursuing profitability.
The persistence of this metric over consecutive months, coupled with the fact that short-term holders’ pocket value exceeds a certain threshold, indicates that they are committed to staying invested. CryptoQuant further reveals that this pattern mirrors previous price cycles such as those in 2015 and 2019 where short-term holders maintained their positions and reaped long-term rewards.
In particular tCurrent cycle profitability for both long-term and short-term owners has not yet reached levels that create significant selling pressure. This trend suggests that Bitcoin still has room for growth and the potential for another wave of demand.
Despite ongoing regulatory challenges and negative market sentiment, short-term holders remain undaunted and are holding their Bitcoin investments with optimism. In addition, Glassnode facts has further supported the resilience of short-term owners, highlighting a recent uptick in hodling activity.
According to the data, after a period of active selling in the previous month, short-term holders have shown a renewed commitment to maintaining their Bitcoin holdings. This shift in sentiment indicates their belief in Bitcoin’s future potential, even in the face of regulatory uncertainties.
Long-term holders maintain confidence in Bitcoin
In the meantime, Long-term Bitcoin holders have also shown confidence in the cryptocurrency, in addition to short-term holders being unfazed. These holders have shown minimal movement of their tokens to centralized exchanges, highlighting their commitment to holding their Bitcoin assets for the long haul.
By holding their positions and avoiding panic selling, long-term holders contribute to the overall stability of the market and reinforce the positive outlook for Bitcoin. Anyway, ohOver the past week, Bitcoin has suffered a significant price drop, pushing its market value below $26,000, a 2.9% decline.
This downward trend can be attributed to the prevailing negative sentiment in the crypto market, which has been further amplified by the recent Securities and Exchange Commission (SEC) lawsuit against Binance and Coinbase, two of the world’s leading cryptocurrency exchanges.
However, despite this drop, the largest cryptocurrency by market capitalization has shown a slight increase of 0.2% in the past 24 hours.
BTC, on the other hand, is trading at USD 25,826, reflecting a notable drop in value compared to its price above USD 27,000 just a week ago.
Featured image of Unsplash, chart from TradingView
