Despite Bitcoin’s $60,000 Breakout, Data Shows “Whales” Still Unsold

Bitcoin has been on a tear over the past few months, with the world’s largest crypto asset continuing to rise despite rising market volatility. In the past week, Bitcoin reached its highest point of around $61,000.
As of writing, Bitcoin is trading at $58,722, having gained more than 6% in the past 24 hours.

However, based on the overall short-term bullish sentiment in the Bitcoin market and its long-term prospects, how are different market participants reacting to the price increase?
The community of holders has a significant impact on the long-term price changes of Bitcoin.
According to data provided by Glassnode, Bitcoins held for no more than 3 months are being traded. Interestingly, the cryptocurrencies with the highest trading liquidity in the past few months are newly issued, and data shows that more than 95% of the cryptocurrency output is less than 3 months.
If Bitcoin is to achieve its goal of $100,000 by 2021, the confidence of Bitcoin holders is crucial. In fact, Glassnode also pointed out the subtle differences between long-term and short-term Bitcoin investors.
Glassnode pointed out in a recent report that “currently, demand from short-term holders remains strong, and long-term holders are gradually selling Bitcoin at a slow pace. However, the important thing is that long-term holders still hold a lot of Bitcoin, which is beneficial for holders to trade.”

Compared to the Bitcoin price surge in January, long-term holders are not cashing out to a large extent. Market data shows that the change in Bitcoin net positions remains negative at around -200K.
However, in the early stages of the volatile rally around January, the reading remained around -800K, indicating that hoarders were cashing out.
The fact that older accounts saw lower equity changes further suggests that bullish sentiment among holders in the market is strong and that even short-term volatility in Bitcoin is unlikely to push the price of Bitcoin in a downward direction.
This also shows that cryptocurrencies will have the ability to fluctuate upwards if there is a price correction in the market.

A few days ago, the price of Bitcoin dropped to below $55,000, but eventually rebounded and recovered to a price position close to $60,000. It is not difficult to see how surprisingly volatile the BTC market can be.
BitPrime noted that while volatility dropped sharply at the beginning of the month, it has now once again continued to climb and is currently around 4.46%.
While the reasons to hold Bitcoin are as compelling as ever, whales are now entering the market and profiting from it. According to Santiment, when Bitcoin prices fell earlier this week, activity from large addresses was unusually high.
In three weeks, approximately 23,478 transactions worth more than $100,000 were completed in the Bitcoin system. What we need to pay attention to is that if $100,000 is to become a credible goal by the end of the year, then Bitcoin needs the holding of large accounts to accelerate the realization of its historical high price. (Blockchain Knight)