As the price of Bitcoin rose from $67,000 to $100,000 following Donald Trump’s victory, the selling by long-term investors and the increased interest from ETFs will shape Bitcoin’s future price movements.
Bitcoin futures volume hit an all-time high of nearly $120 billion on Nov. 17, nearly doubling after the election, according to Checkonchain data. However, futures volume has since stabilized and is settling around $100 billion.
A similar pattern occurred in spot trading volume, which increased from around $6 billion to $12 billion. Additionally, the trading volume of U.S. exchange-traded funds (ETFs) traded on spot also increased, reaching $4 billion per day.
Bitcoin remains stuck in a key trading range at $100,000, with frequent drops above and below that level. Much of this is due to selling pressure from long-term investors (LTHs) who have held Bitcoin for more than 155 days. LTHs have sold 843,113 BTC since September, he said.
What is required for Bitcoin to stay above $100,000
He stated that for Bitcoin to rise above the $100,000 level, LTH holders must either stop selling their tokens or larger groups must enter this area and make purchases.
During the same period, short-term investors (STH) who held for less than 155 days accumulated 1,081,633 BTC. This means that LTHs sold approximately 9,960 BTC per day, while STHs accumulated 12,432 BTC.
To better illustrate the difference in trading volume in long and short positions, a comparison was made with MicroStrategy (MSTR), one of the major players in the industry and which introduces itself as a Bitcoin development company.
Since September, MicroStrategy has bought about 2,168 BTC daily, accumulating a total of 197,250 BTC. US ETFs have bought about 205,000 BTC, accumulating 2,253 BTC daily. The Bitcoin balance of US ETFs has increased from 916,000 BTC to 1.12 million BTC.
Stay tuned for new information.