Bitcoin hodlers continuing to accumulate during price declines, along with short-term holders buying more during price surges driven by FOMO (fear of missing out), sets a “bullish tone” for 2025, according to a crypto analyst.
Long-term Bitcoin (BTC) holders (LTH) — those who have held their Bitcoin for more than 155 days — dominance “remains high, signaling strong long-term conviction,” CryptoQuant contributor IT Tech said in a Jan. 24 analyst note. He said:
“They continue to accumulate during price declines and strategically take profits during upward trends.”
Short-term holder behavior is setting a “bullish tone” for 2025
Meanwhile, IT Tech said that Bitcoin short-term holders — those who have held their Bitcoin for less than 155 days — seem more confident about buying into the market’s upside momentum, making him more optimistic about Bitcoin’s price over the next 12 months.
Bitcoin is trading at $104,390 at the time of publication. Source: CoinMarketCap
He said that short-term holders jumping in most when Bitcoin’s price is on the rise signals they’re “FOMO-driven entries.”
“Short-term holders acting on speculation, sets a bullish tone for 2025,” he said.
Throughout January, Bitcoin has hovered around the psychological $100,000 price level, dipping below it a few times while briefly reaching a new all-time high above $109,000 on Jan. 20, just ahead of Donald Trump’s inauguration as US president.
As of the time of publication, the average long-term holder’s cost per Bitcoin stands at $24,639. According to Bitbo data, this means the average holder is currently enjoying a profit exceeding four times that amount.
Bitcoin’s current price is $104,390, as per CoinMarketCap data.
Bitcoin long-term realized price is $24,639 at the time of publication. Source: Bitbo
The short-term realized price is $90,541. Data from Checkonchain, a Bitcoin onchain analysis program, indicated that 80% of short-term holders were back in the profit bracket after Bitcoin’s recovery above $100,000.
Earlier this month, the short-term holder supply in loss dropped to 65% before Bitcoin rebounded.
LTH profit-taking creates accumulation opportunities
Meanwhile, IT Tech explained that occasional sell-offs by long-term holders shouldn’t be a cause for concern, as they can “create healthy pullbacks, offering opportunities for new accumulation,” he said.
Related: Bitcoin bull market at risk? 7 indicators warn of BTC price ‘cycle top’
According to a separate Jan. 24 analysis by CryptoQuant contributor “Crazzyblockk,” long-term holders are “largely avoiding significant selling, reinforcing a strong HODLing sentiment despite current market fluctuations.”
The analyst said that recent onchain data revealed that only 18% of Bitcoin deposits into crypto exchange Binance come from long-term holders.
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