Bitcoin (BTC) experienced a 3.54% gain, with its price rising to $27,169 per coin on Friday, driven by increased demand. This comes after months of fluctuation within what is deemed the "accumulation zone" ranging from $24,756 to $31,818 since March 2023.
The cryptocurrency has seen a shift in its holding pattern. According to data shared by Will Clemente of Reflexivity Research on X (formerly Twitter), short-term traders have been liquidating their Bitcoin holdings while long-term holders have steadily increased their stakes. The information was illustrated with a chart from Glassnode, a blockchain analytics firm.
Long-term holders are defined by Glassnode Academy as those who hold Bitcoin Unspent Transaction Outputs (UTXOs) for over 155 days. These holders tend to be less engaged in swing or day trading, instead employing strategies like dollar-cost averaging or position trading.
This shift towards long-term holding has culminated in record level holdings of Bitcoin. The increase in demand and reduced market volatility due to less frequent trading could be contributing factors to the recent rise in Bitcoin's price.
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