Short-term investors jumping on Bitcoin en masse?

It seems that the launch of the Spot Bitcoin ETFs in the United States is a notable development. Since January, holdings of short-term investors – people who have owned their Bitcoin for less than 155 days – have increased by 55%. This indicates that people are currently speculating on the Bitcoin price to a fairly extreme extent.

It looks like we still have overhang from last cycle.

Short term holders realized price is steadily rising as new players enter the market and Buy #Bitcoin. Hedge funds, Pension Funds, Banks etc.

But the price isn’t taking off because older coins are being distributed.

We… pic.twitter.com/VxaXozgANT

— Thomas | heyapollo.com (@thomas_fahrer) June 12, 2024

Why isn’t the Bitcoin price rising?

The Bitcoin price hardly responds to this development, because many existing investors are selling their coins. They now of course have the opportunity to sell their Bitcoin again around the all-time high of 2021 and many seem to be taking advantage of that.

Bitcoin has been trading in the same price range for several months now and has not managed to break out. No convincing new all-time high has yet been set for Bitcoin for this cycle.

It seems we need to be patient and wait for an improvement in the macroeconomic environment. Inflation in the United States is still too high, even after yesterday’s positive score. As a result, there is little room for the Federal Reserve to cut interest rates.

Long-term investors are starting to buy again

After the all-time high of March 14, long-term investors started selling off their Bitcoin a bit. But that now seems to be turning around again. Bitcoin whales are also now buying aggressively. It seems that they are preparing for the next Bitcoin price explosion.

There is of course no guarantee of this, but it is encouraging to see that such investors have now started buying again. That at least offers some hope for the months ahead.

However, much remains dependent on the macroeconomic situation. Inflation must be reduced so that interest rates can drop and the financial market can return to a positive swing.

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