Bitcoin, the biggest cryptocurrency by market capitalization, reached $37,987 in Wednesday’s trading session, nearing a one-week high. So far this year, it has increased by almost 125%.
Bitcoin (BTC) and numerous altcoins have rebounded to levels last seen a week ago, reversing virtually all of the losses from a $300 million liquidation event earlier in the week.
Bitcoin neared $38,000, a level last seen in May 2022 as part of an extended rise fueled by hopes of new demand for the lead cryptocurrency from exchange-traded funds.
At the time of writing, the market is witnessing some profit-taking, with Bitcoin and other altcoins reversing their previous-day gains.
BTC was up 2.33% in the last 24 hours to $36,942 at the time of writing.
Here’s what happened recently
A recent analysis from on-chain analytics provider CryptoQuant gives some context on what happened with the Bitcoin price.
#Bitcoin Update: What Happened Recently?
“Short-term holders sell off while long-term holders stick around and take advantage of the situation to get more Bitcoin.”
by @OnchainTarekLink👇https://t.co/45DG5LOL82
— CryptoQuant.com (@cryptoquant_com) November 16, 2023
In a quick-take report, CryptoQuant observed some interesting patterns among Bitcoin holders as BTC prices skyrocketed in the past few weeks.
In the analysis, the behavioral patterns of Bitcoin long- and short-term holders were examined.
One pattern was spotted: long-term holders are sticking around while short-term holders are selling off.
What is more intriguing is that the Bitcoin sold by short-term holders appears to have been purchased by long-term holders. This is more like a swap between the two groups, with long-term investors profiting from short-term ups and downs.
Long-term holders appear to be taking advantage of the recent seesaw price action of BTC to acquire more Bitcoin. The MVRV indicator, which remains below two, indicates that long-term investors are not in a rush to cash out.
