Bitcoin Long-Term Holder Rate Returns To 2021 Levels, Good News For Crypto?
Long-term Bitcoin holders are once again bullish even as prices recover. This time around, the rate at which more investors are choosing to hold their coins longer is growing rapidly and is now back to 2021 levels when the last bull market was at its peak.
Bitcoin holders who choose to keep their coins
A new report from Santiment has revealed that there are now more long-term Bitcoin holders compared to a year ago. More investors are now content to hold their coins instead of selling on every move and this trend has steadily increased since the start of the year.
In the chart shared by Santiment, the rate of acceleration over the last few months is eerily similar to that 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.
BTC long-terms holders rising at rates not seen since 2021 | Source: Santiment
“There is an increasing rate of #Bitcoin #hodlers as traders seem to be increasingly content with keeping their exchanges unchanged for the long term. We saw a similar trend from January 2021 to April 2021, when $BTC rose above $64,000 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 the long-term holder rate accelerated this fast was in 2021, and what followed was a stunning Bitcoin price recovery, which inevitably spilled over to the rest of the market. If the current trend leads to the same results, it could trigger the start of the next bull market.
BTC price rose over 100% last time investors held this long | Source: BTCUSD on TradingView.com
A look at Bitcoin 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 value of the digital asset before it started correcting downwards in May 2021.
As more investors choose to hold their BTC for longer periods, with 69% currently holding it for more than a year and 23% holding their coins between 1 to 12 months, the supply of the asset on the open market decreases, thus increasing its value. as demand soars.
What this shows is another indicator that the market is currently more bullish than bearish. A continuation of this trend could quickly see BTC price rise above $30,000 in April, just like in 2023. This would instantly solidify BTC’s arrival on another bull rally.