Bitcoin’s price has been on the move lately, and new data suggests some interesting things about who’s buying and selling.
What the Data Shows
A recent analysis from IntoTheBlock looked at how much Bitcoin different groups of holders own. They divided holders into three groups based on how long they’ve held their Bitcoin:
- Traders: Holders who bought Bitcoin in the last month.
- Cruisers: Holders who bought Bitcoin between one and twelve months ago.
- HODLers:
Holders who’ve held Bitcoin for over a year.
Generally, the longer someone holds Bitcoin, the less likely they are to sell. IntoTheBlock’s chart shows the change in Bitcoin held by each group over the past decade. Recently, the amount of Bitcoin held by traders has gone up significantly.
Interpreting the Trader Increase
This increase in Bitcoin held by traders is interesting. It means that either cruisers or HODLers (or both) have been selling some of their Bitcoin. Since the price of Bitcoin has also been rising, it’s possible this is profit-taking – long-term holders cashing in some profits.
The chart also shows HODLers are still holding strong, so it’s likely the cruisers who are selling. While cruisers are more likely to hold than traders, they can still be influenced by price swings and sell out of fear.
However, there’s another way to look at the increase in trader holdings: it could signal new demand for Bitcoin. A similar increase in trader holdings happened during a Bitcoin price rally in late 2024. If this trend continues, it could mean the recent price increase is more than just a temporary bounce – it could be the start of a longer upward trend.
The Current Bitcoin Price
Bitcoin experienced a slight dip below $93,000 recently, but it quickly recovered and is now trading above $95,200.