Retail and Long-Term Holders Drive Bitcoin’s Record Breaking Rally

Bitcoin is gaining momentum, recently hitting a record high of around $110,000 and reigniting investor optimism.

Renewed interest from both institutional and retail investors, coupled with favorable market conditions, has set the stage for what could be a historic rise.

Data shows a decline in Coin Days Destroyed (CDD), a metric that reflects long-term holder activity. After a period of significant profit-taking in late 2024, January has seen a sharp decrease in CDD, indicating that many long-term holders are now holding steady. This reduction in selling pressure suggests increased market stability and confidence, creating a strong foundation for future price growth.

The behavior of these holders, who are retaining their Bitcoin rather than cashing out, supports bullish momentum and provides optimism for sustained upward trends.

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Smaller investors, often referred to as “Shrimps” and “Crabs,” have significantly contributed to Bitcoin’s strength. These holders, with wallets containing less than 10 BTC, collectively acquired over 25,600 BTC worth approximately $2.71 billion. Their increased activity demonstrates growing confidence in Bitcoin’s potential and reinforces market stability.

This retail accumulation has bolstered Bitcoin’s position, acting as a buffer against market corrections and amplifying its upward trajectory. Combined with reduced selling from long-term holders, these factors point to continued bullish prospects for Bitcoin as it approaches the highly anticipated $110,000 level.

Alexander Stefanov