According to Cointelegraph: Despite a 21% drop from its all-time high, the majority of Bitcoin (BTC) in circulation has remained untouched in wallets for over six months, according to recent onchain data. This trend highlights the growing conviction among long-term holders in the cryptocurrency market.

Data from Glassnode's Hodl Wave chart reveals that approximately 75% of all Bitcoin has not been moved for the past six months or more. This marks a significant increase from just a week ago, when around 45% of Bitcoin had been dormant for at least half a year. The surge in immobile Bitcoin suggests that investors are increasingly viewing Bitcoin as a store of value, holding onto their assets in anticipation of future price increases.

The trend of holding Bitcoin for extended periods could have significant implications for the market. As more Bitcoin is held by long-term investors, the supply of Bitcoin available for trading decreases. This reduced supply, combined with steady or increasing demand, could potentially drive up the price of Bitcoin in the future.

In contrast, short-term holders, defined as those who have held Bitcoin for fewer than 155 days, are experiencing a different reality. Onchain analyst James Check noted that over 80% of short-term holders are currently underwater, meaning they purchased Bitcoin at prices higher than the current market value. This group of investors is particularly vulnerable to panic selling, which could trigger further downward pressure on Bitcoin prices.

"This situation is reminiscent of the market conditions in 2018, 2019, and mid-2021," Check explained, "when many investors were at risk of panicking and precipitating a bearish trend."

At present, broader market sentiment remains cautious, as reflected by the Bitcoin Fear & Greed Index, which has registered a score of 28, indicating a state of fear. This sentiment is the lowest it has been since December 2022.

Bitcoin prices had briefly climbed above $60,000 over the weekend but have since retreated, currently trading at around $58,619. As the market continues to navigate these uncertain waters, the behavior of both long-term holders and short-term traders will be key factors in shaping Bitcoin's price trajectory.