Bitcoin holders seem to be amassing more Bitcoin (BTC) after the recent rally in which long-term holders reduced their position sizes.
Long-term Bitcoin holders have started accumulating the cryptocurrency again, according to on-chain data and intelligence platform Glassnode. Previous data suggests that long-term owners have sold or reduced their position sizes since October 2020.
The decline in stocks began after Bitcoin crossed the $ 12,500 mark. This accelerated and peaked in mid-January 2021. Probably around the time, Bitcoin broke $ 40,000.
The offload took until early April, and it now looks like long-term Bitcoin holders will amass the digital assets again.
Bitcoin’s consistent bullish momenta
The reason for the shift from decreasing position size to increasing position size is likely due to Bitcoin’s continued upward momentum. It is likely that Bitcoin will not see a major drop below $ 40,000. This would mean that holders would try to fall back on Bitcoin before the price continues to rise.
Bitcoin has seen an impressive 400% rise in price since the sell-off began, rising from $ 12,500 to its recent high of $ 64,800.
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Bitcoin recently hit a new all-time high, sparking new speculation that the cryptocurrency could hit $ 100,000 sooner than expected.
With the current bull market booming across the board, the bullish sentiment for Bitcoin has never been so strong. The adoption of cryptocurrencies is reaching a new level as the U.S. cryptocurrency exchange Coinbase was recently listed on the Nasdaq. This makes it the first cryptocurrency-oriented company to do this.
The company’s valuation makes it one of the largest on the market based on its share price.
While long-term Bitcoin holders may pile up again, the data suggests that Bitcoin’s dominance is declining. The rapid decline in dominance will result in traders converting their funds into altcoins and other major caps.