The Rise of Buyer Interest
What this Means for the Market
Benefits for Hodlers
A Shift in Sentiment
What the Data is Saying
Implications
Quick Facts
- 76.9% of coins are six months old or less, indicating a strong holding behavior.
- Only 13.4% of coins are older than six months, indicating a slow pace of sales.
- The short-term holder (STH) cohort, which includes coins bought within the last six months, has seen a significant increase in price momentum after reclaiming its average cost basis at just under $100,000.
Bitcoin Buyer Dominance at $111K Suggests “Another Wave” of Gains
The Bitcoin market has seen a significant shift in recent weeks, with buyer interest reaching an all-time high. As the price of Bitcoin hovers around $111,000, analysts are forecasting another wave of gains. In this article, we’ll explore the current state of the market and what this dominance may mean for investors.
The Rise of Buyer Interest
Bitcoin buyer interest has been on the rise for several months, with a cumulative volume delta (CVD) of 90 days favoring bulls. This trend has been consistent, with buyers staying dominant despite a 50% surge in the price of Bitcoin in under two months. According to CryptoQuant, a popular on-chain analytics platform, the uptrend may continue due to the dominance of buy orders over sell orders.
What this Means for the Market
Benefits for Hodlers
For Bitcoin holders, this dominance is good news. As the price of Bitcoin increases, it’s less likely that holders will need to sell their coins to cash out. In fact, data from Glassnode shows that daily profit-taking has halved compared to when Bitcoin first reached $100,000 in December 2024. This suggests that holders are holding onto their coins, rather than selling into the market.
A Shift in Sentiment
One key indicator of sentiment is the willingness of old coins to be sold into the market. As the price of Bitcoin increases, older coins are less likely to be sold, as holders are confident that the price will continue to rise. This shift in sentiment is a key driver of the recent dominance of buyers.
What the Data is Saying
The data is clear: buyers are in control, and the uptrend may continue. A breakdown of the data shows that:
Implications
- The uptrend may continue, at least in the short term, as buyers remain dominant.
- Hodlers are unlikely to need to sell their coins, as the price continues to rise.
- The market may see another wave of gains, as buyers continue to drive the price higher.
