A recent Bitfinex Alpha report indicates a shift in Bitcoin ownership trends. Short-term investments are on the rise, driven by the popularity of spot Bitcoin ETFs, while long-term holders maintain their confidence in the market.

Changing Patterns in Bitcoin Ownership

There has been a significant change in Bitcoin (BTC) ownership, particularly among short-term holders. These investors, who typically hold Bitcoin for less than 155 days, have increased their activity. Their combined holdings rose from 2.2 million BTC in January to over 3.4 million BTC by mid-April, marking nearly a 55% increase.

This surge is primarily linked to the growing impact of spot Bitcoin ETFs.

Short-Term vs. Long-Term Holders

The increase in short-term holders indicates a strong level of investment in BTC, driven by the launch and popularity of spot Bitcoin ETFs. The concentration of these brief asset holdings near the current market price suggests substantial investment activity at this price point. However, this also introduces vulnerability and potential price fluctuations.

The number of short-term holders continues to rise due to new market entrants buying Bitcoin. Despite this, the price remains stable because older coins are being distributed. The market is still adjusting, and the $60,000-$70,000 price range is expected to become the new floor for BTC, similar to how $10,000 became a base in 2020.

The supply held by short-term holders currently stands at approximately 3.3 million BTC, a slight decrease from the mid-April peak. This reduction is attributed to the market correction in March following Bitcoin’s all-time high.

Long-Term Holders: A Bullish Sentiment

Long-term Bitcoin holders are showing strong confidence in the market. After Bitcoin reached a new all-time high of $73,666 in March, many long-term holders sold significant amounts of their BTC. However, recent data indicates that this selling trend has halted, and long-term holders are now starting to accumulate Bitcoin again.

The amount of Bitcoin held by investors for over a year has remained almost unchanged, suggesting these investments are being held rather than actively traded.

STH hit breakeven with the latest $BTC dip, marking a potential reaction zone.

Furthermore, only about 0.03% of the supply held by long-term investors comprises coins bought at prices higher than the current spot price. In the early stages of a bull market, it’s common to see long-term investors holding onto their profitable positions.

Bitcoin whales are also accumulating Bitcoin at a pace reminiscent of the pre-2020 bull run, leading to a new historical high in their Bitcoin balance.

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