Bitcoin’s long-term holders are once again on the rise even with the price recovery. This time around, the rate at which more investors choose to hold their coins longer is growing rapidly and is now back to 2021 levels, when the last bull market was in full swing.
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 rather than sell on every move and this trend has been on a steady rise since the start of the year.
In the chart shared by Santiment, the rate of acceleration in recent months is eerily similar to what was seen from January to April 2021 during the bull market. Traders were more interested in accumulating than taking profit, following the same growth pattern both times.
BTC long-terms holders rising at rates not seen since 2021 | Source: Santiment
“There is a rising rate of #Bitcoin #hodlers as traders seem to have become more and more content to hold their stocks flat for the long term. We saw a similar trend from January 2021 to April 2021 when $BTC topped $64k for the first time,” the on-chain data aggregator said.
Could it be good news for the crypto market?
As mentioned above, the last time the long-term headline rate accelerated this fast was in 2021, and what followed was an impressive Bitcoin price rally that inevitably spilled over into the rest of the market. If the current trend led 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 began to correct downward in May 2021.
As more investors choose to hold their BTC for longer periods, with 69% currently holding their coins for more than a year and 23% holding their coins for between 1 and 12 months, the supply of the asset on the open market decreases. , which increases in value as demand skyrockets.
What this shows is another indicator that the market is currently more bullish than bearish. A continuation of this trend could see the price of BTC rapidly rise above $30,000 in April, just as it did in 2023. This would instantly solidify BTC’s arrival at another bullish rally.
