Bitcoin Short-Term Holders Now In Profit, What Changed?

By: bitcoin ethereum news|2025/05/03 23:00:05
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Glassnode, a blockchain analytics platform, shared a chart showing how Bitcoin short-term holders are profiting amid the BTC price shift. Judging by the market’s previous outlook, the recent pivot has surprised many crypto enthusiasts. While the price of BTC has traded within a very close range over the past month, many now wonder what changed in such a short while. The Short-term Holders Cost-basis Analysis The cost basis ribbon for these short-term holders, investors who have held BTC for only a little over one month, shows that they have returned to profit. This marks a notable achievement, seeing that the shift eases the selling pressure from the older long-term holders. If it is steadily maintained, it has the potential even to signal early signs of positive market momentum. With these short-term holders in profit, the market is likely to see less panic about selling pressure. At the same time, these holders may be enticed by the uptick and end up selling their holdings for Fear of Missing Out (FOMO) on the potential gains. For now, the current position of short-term BTC holders suggests growing market confidence and a bullish sentiment. Oftentimes, short-term holders’ profitability is a sign of a looming uptrend or a new bullish price run. If these assumptions play out, BTC may just be heading for a push past $100,000 or even $109,000, a level that marked its last ATH. Bitcoin Dominance Back to New High and Implication Amidst the wins of short-term BTC holders, Bitcoin dominance has recorded an upsurge, reaching its highest level in the past four years. This follows a notable rally in Bitcoin price. The flagship cryptocurrency trades at $97,684.57, 0.67% higher than its previous 24-hour level. Its market capitalization is now at $1.93 trillion, more than 64% of the entire crypto market cap, which has also risen to $3.04 trillion. Interestingly, the ripple effect of this new development will likely reach Ethereum (ETH) and all other altcoins. Depending on the magnitude of their impact, capital inflows to BTC may eventually fuel an altcoin season like the one the market recorded four years ago. The current dominance shift is a remarkable recovery for Bitcoin amidst the broader crypto market rebound. Another implication of this big BTC dominance push is the accompanying FOMO. Traders may withdraw their funds from altcoins and plunge them into Bitcoin investments. This is because the top coin is now perceived as safe overall. If this is the case, altcoins may lag in performance and never enter the expected Altseason in the near term. What Next for BTC price? By several standards, Bitcoin is exhibiting strong upward momentum. Bullish patterns and large institutional purchases invariably point toward a potential breakout. The Popular Bitcoin “collector” Strategy, formerly known as MicroStrategy, is planning to raise $84 billion through $42 billion in equity and $42 billion in fixed income. The goal of this exercise is to acquire more Bitcoin. At the current price of BTC, the fund could add 860,000 BTC to the firm’s holdings. Tokyo-based Metaplanet is also rapidly increasing its Bitcoin holdings. This company intends to hit 10,000 BTC in its portfolio by the end of 2025 and is already on its 12th bond issuance. Based on this outlook, market analysts and experts project that Bitcoin could climb above $109,000. Source: https://www.thecoinrepublic.com/2025/05/03/bitcoin-short-term-holders-now-in-profit-what-changed/

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