Long-Term Bitcoin Investors Accumulate Coins Enormously

While traders sell, Bitcoin cruisers accumulate at record levels, anticipating a bullish future.

Long-term Bitcoin investors, known as "cruisers" (investors who hold BTC for 5 to 10 years), significantly increased their holdings, reaching levels not seen since January 2020. This movement contrasts with the reduction of positions by "holders" and "traders", generating speculation about the future of the Bitcoin price.

Cruiser investors increased their Bitcoin holdings by an impressive 44.04% over the past 12 months / Tradingview

"Cruisers" bet heavily on Bitcoin

According to data from IntoTheBlock, "cruiser" investors increased their Bitcoin holdings by an impressive 44.04% in the last 12 months. These went from 4.61 million BTC on December 11 to 6.08 million BTC currently. This massive accumulation, the highest in the past three years, matches the figures from January 2020 and is close to the all-time highs of September 2021, when they held 7.49 million BTC. This behavior suggests a strong conviction in the long-term bullish potential of Bitcoin, especially after the recent electoral victory in the United States.

Divergence between different types of investors

While "cruisers" accumulate, other groups of investors show different behavior:

Holders (3-5 years): They reduced their positions from 13.71 million BTC to 12.13 million BTC in the last year, a decrease of 11.45%. Despite this reduction, their holdings are still higher than 5 years ago (10.58 million BTC). The peak holdings of “holders” was 13.84 million BTC in January 2024.

Traders (1-3 years): They drastically reduced their holdings to 1.62 million BTC, from the 2.84 million BTC they held on December 20th. In the last year, the reduction of positions of “traders” was 6.87%, taking profits after the bullish movement between October and December.

Miners: They also reduced their balances by 4.65% in the last year, going from 1.99 million BTC to 1.90 million BTC.

The price of bitcoin and the macroeconomic context

This Sunday, the price of bitcoin fell to USD 102,627, registering losses of 2.02% in a day of low volume. This fall occurs in a context of uncertainty regarding the next announcement of the United States Federal Reserve on interest rates. Speculations about the FED's decisions and the new US president's tariff policies are creating volatility in the market. There is speculation that the FED could keep the interest rate at 4.50%, while the president advocates for a reduction.

Ohio Seeks Bitcoin Strategic Reserve

In a notable news, the state of Ohio introduced a bill to establish a Bitcoin strategic reserve. This initiative, led by Steve Demetriou, seeks to improve the state's treasury reserves by investing up to 10% of its general fund in Bitcoin.

Technical analysis and short-term outlook

Bitcoin remains in a market with bullish sentiment in the short and medium term, trading above the dynamic support of the EMA25 at USD 100,600. As long as it remains above this level, the price could continue to advance. However, it is in a liquidation zone near the resistance at USD 108,000, where it has already been rejected twice.

Massive accumulation by long-term investors, contrasted with profit-taking by other groups, creates a complex outlook for Bitcoin. While the long-term trend looks bullish, short-term volatility persists due to macroeconomic factors and market dynamics. Ohio's move to create a Bitcoin Strategic Reserve is a positive sign for institutional adoption.

Disclaimer: This analysis is provided for informational purposes only and does not constitute financial advice. Cryptocurrency trading is highly volatile and carries risks. Please conduct your own research and consult a financial advisor before making any investment decisions.