Bitcoin: will this cohort keep bears at bay?

• Short-term holders began to accumulate BTC despite a price correction.
• MVRV ratios declined while traders remained positive.

Bitcoin [BTC] witnessed a massive correction in the last few days. This correction caused many in the crypto sector to become skeptical about BTC’s price and its future direction.

However, recent data provided by CryptoQuant’s Axel Adler painted a different picture.

Holding on

According to Adler, there is a positive case to be made for BTC. In his analysis, he stated that this week was a highly anticipated period due to the introduction of ETFs, marking a pivotal moment in Bitcoin’s history.

Due to this, there was a substantial influx of cash, resulting in a surge of short-term holders of BTC. According to Adler, this heightened activity mirrored a similar spike observed in April 2023.

A growing accumulation of BTC by short-term holders indicated that retail interest in BTC was still very high, despite the price of BTC witnessing a fall.

Moreover, as time passes and as BTC gets more popular in mainstream markets, the price of BTC may grow even more, likely due to the activity of short-term holders.

Furthermore, the Bitcoin Put-to-Call ratio also declined, which was a positive sign. This fall in the Put-to-Call ratio indicated that the traders were optimistic about the future of BTC, despite its value seeing a decline.

Thus, the overall sentiment around BTC remained positive despite market uncertainties.

Read Bitcoin’s [BTC] Price Prediction 2024-25

During this time, the Implied Volatility (IV) around BTC had witnessed a descent as well. This indicated a more stable market environment, which could impact how traders behave going forward.

Source: The Block

At the time of writing, BTC was trading at $42,554.24, experiencing a marginal 0.07% price dip in the last 24 hours. Daily Active Addresses on the network remained steady, indicating a consistent level of engagement within the Bitcoin ecosystem.

Source: Santiment