After a week marked by relative stability across the cryptocurrency market, Bitcoin held its ground Sunday after prices failed to hold above $27,200 earlier this week. Factors contributing to this stability included the Federal Reserve’s policy meeting, which concluded without any new interest rate hikes.

Furthermore, signs of global cryptocurrency adoption continued to emerge, underscoring the industry’s ongoing growth with Nomura, a Japanese banking behemoth, Nomura launching a Bitcoin fund earlier in the week.

Hodlers Stay Strong Amid Market Volatility

Amidst this backdrop of market stability and growing adoption, a compelling trend has also surfaced within the realm of Bitcoin- the unwavering resolve of long-term holders to hold onto their coins. Long-term holders (LTHs) or “Hodlers” are typically individuals who have maintained their Bitcoin positions for over 155 days.

According to data from crypto analytics firm “Into the Block,” these individuals have consistently displayed an unwavering commitment to the cryptocurrency. Notably, this cohort now holds an impressive 13.44 million Bitcoins, nearing a record high, which equates to an astonishing 69% of the total circulating supply which currently stands at 19.49 million BTC.

“Historically, these holders sustain prices in bear markets and take profits in bull runs,” the firm wrote on Sunday.

Short-term Holder Challenges

On the flip side, short-term holders (STHs), characterised as Bitcoin investors who have held their assets for 155 days or less, are experiencing a notable shift. In the latest “Week Onchain Newsletter” from chain analytics firm Glassnode, STHs now possess a smaller portion of the available Bitcoin supply than they have in over a decade.

Glassnode’s data revealed that 97.5% of short-term holders are currently facing unrealized losses suggesting a significant reduction in their influence. Interestingly, onchain data also revealed that Bitcoin Hodlers are increasingly acquiring more Bitcoin from short-term holders.

Notably, as nearly all Short-Term Holders find themselves in a losing position, sentiment has also taken a notable downturn, raising the likelihood of seller exhaustion, which could give bulls an upper hand. Conversely, when over 97.5% of short-term holder positions are in the green, these participants often seize the opportunity to exit their positions either at break-even or with a profit.

That said, this shift in Bitcoin ownership dynamics could play a pivotal role in shaping the cryptocurrency’s price trajectory, regardless of short-term market turbulence.

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Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.