Short-term holders’ willingness to hold on to their stash depicted that Bitcoin still has room for growth.
Periods similar to the ongoing SEC-induced FUD test the resilience of short-term holders – a cohort that is typically the first to flee as the price of crypto-asset tanks.
However, the latest data suggest that the movement of short-term Bitcoin holders depicted strong interest in staying in the market and gaining profitability.
A CryptoQuant analyst stated that despite the lackluster in Bitcoin’s price, as it continued to remain trapped within the $25k-$30k range, the possibility for growth in its trajectory is not over yet. The blog post explained,
“According to the short-term holder SOPR metric, when the number 1 of this data maintains for consecutive months, and the pocket value of these holders moves above this level is a sign of a strong interest in staying in the market and gaining profitability. 2015 and 2019 price cycles are good examples.”
As such, upon comparing the present cycle with 2019, the analyst noted that the profitability of long-term and short-term holders has not been high enough to trigger heavy selling pressure.
Such a trend essentially suggests that Bitcoin has the potential to grow with another wave of demand.
Further validating the short-term BTC holders’ resilience is data from Glassnode, which revealed an uptick in hodling activity by this group since the beginning of July after a period of active selling the previous month.
Long-term Bitcoin holders were yet another cohort of market participants that have displayed remarkable resilience by focusing on holding their stash.
It was found that only a very tiny fraction has transferred their tokens to centralized exchanges.