Bitcoin long-term holders are once again on the rise even with recovering prices. This time around, the rate at which more investors are choosing to hold their coins for longer is growing rapidly and has now returned to 2021 levels, when the last bull market was at its peak.
Bitcoin Holders Choosing To Hold Their Coins
A new report from Santiment has revealed that there are now more Bitcoin long-term holders compared to a year ago. More investors are just now content to hold on to their coins instead of selling at every move and this trend has seen a steady increase since the year began.
In the graph shared by Santiment, the rate of acceleration over the last couple of months is eerily similar to what was seen from January to April 2021 during the bull market. Traders were more interested in accumulating than taking profits, following the same growth pattern both times.
“There is a rising rate of #Bitcoin #hodlers as traders seem to have become increasingly content in keeping their bags unmoved for the long-term. We saw a similar trend from January 2021 through April 2021 when $BTC rose above $64k for the first time,” the on-chain data aggregator said.
Could This Be Good News For The Crypto Market?
As mentioned above, the last time that the long-term holder rate accelerated this fast was back in 2021, and what followed was an impressive rally for the price of Bitcoin which inevitably spread to the rest of the market. If the current trend were to lead to the same results, then it could trigger the start of the next bull market.
A look at Bitcoin’s price movements during January-April 2021 shows that the price of the cryptocurrency jumped from around $29,000 to over $64,000 in the four-month period. This was more than double the digital asset’s value before it began to correct downward in May 2021.
As more investors opt to hold on to their BTC for longer periods, with 69% currently holding for more than one year and 23% holding their coins between 1-12 months, the supply of the asset in the open market declines, thus increasing its value as demand skyrockets.
What this shows is another indicator that the market is more bullish than bearish presently. A continuation of this trend could quickly see the price of BTC rise above $30,000 in April just like it did in 2023. This would instantly solidify BTC’s arrival in another bull rally.
