Bitcoin's Price Remains Steadfast Above $43,000, Upheld by Long-Term Holders

Bitcoin Price Remains Above $43,000 as Rally Continues

Bitcoin’s price continued to trade above $43,000 on Tuesday as it maintained a rally that has seen its value increase by over 10% in the past week.

Long-Term Bitcoin Investors Holding Firm

The majority of long-term bitcoin investors are not selling their coins at current prices, according to analysts at Glassnode. Their market report states that most bitcoin holders are calmly riding the market waves and holding onto their assets.

Sell Pressure from One- and Two-Year Holder Cohort

However, there is some sell pressure coming from the one- and two-year holder cohort, with older supply moving in recent weeks. This movement is associated with GBTC, indicating that a significant volume of older supply is on the move.

ETF Flows Driving Trading Volume Uptick

Bitcoin spot trading volume has seen higher activity following the approval of ETFs, according to K33 Market Research. The increased trading volume is likely due in part to spot bitcoin ETF flows. However, a substantial portion of ETF flows may be netted between other OTC orders without affecting spot market order books.

Bitcoin On-Chain Volume Reaches Multi-Month High

The monthly on-chain transaction volume for Bitcoin reached a multi-month high in January, standing at $1.11 trillion. On-chain volume has been steadily increasing since September 2023.

Hot Take: Bitcoin’s Rally Continues Amidst Long-Term Investor Confidence

Bitcoin’s price surge above $43,000 signals an ongoing rally that has gained momentum over the past week. Long-term bitcoin investors remain confident and are holding onto their coins despite market fluctuations. The sell pressure from one- and two-year holders indicates movement of older supply, potentially linked to GBTC. Additionally, the approval of ETFs has driven higher trading volume, with spot bitcoin ETF flows contributing to this uptick. Bitcoin’s on-chain transaction volume has reached a multi-month high, reflecting increased activity in the cryptocurrency market. Overall, Bitcoin continues to attract investor interest and maintain its position as the leading digital asset.