Bitcoin recently hit a record high above $109,000, but it’s since dropped a bit to around $105,000. Despite this small dip, things are still looking pretty good for Bitcoin investors.
Bitcoin Holders are Making Bank
A key indicator of market health is how profitable Bitcoin holders are. Looking at data from CryptoQuant, we see a positive picture:
- Long-term holders (holding for over 6 months): These folks are up a whopping 70%!
- Short-term holders (holding for less than 6 months): Still seeing a healthy 14.5% profit.
- New investors (holding for less than 1 month):
Even the newest investors are in the black, with a 4.7% profit.
No major group of holders is losing money, which significantly reduces the chance of a massive sell-off. Even though profits are slightly down from previous weeks, as long as short-term and new investors keep making money, the market is likely to stay strong.
Long-Term Holders are Selling, But It’s Okay
It’s worth noting that long-term holders are selling off some Bitcoin – about 75,000 BTC in the last week, according to analyst Ali Martinez. However, short-term holders and new investors are buying up these coins, preventing a major price drop. If these investors start losing money, that’s when we might see some serious trouble.
Bitcoin Price: A Quick Look
At the moment, Bitcoin is trading around $104,737. It’s slightly up for the day, but down a bit for the week. However, over the past month, it’s seen an 8.71% increase.
The Future Looks Bright (Maybe)
With the new US President’s pro-crypto stance, many expect Bitcoin to continue to rise. Early signs are positive, with actions like the SEC repealing SAB 121 and exploring a national digital asset stockpile.