The recent decline in Bitcoin’s value amidst ongoing macroeconomic volatility might not lead to a swift return to its January peak of $109,000, as anticipated by some analysts.
“It is prudent to recognize that we are currently experiencing a pullback phase after the ATH, and further consolidation may persist due to liquidity requirements,” remarked CryptoQuant contributor XBTManager in a note dated March 5.
Long Bitcoin bids “viable” once long-term holders resume purchasing
XBTManager indicated that long positions will “become viable” when short-term Bitcoin holders — those who have held for less than 155 days — begin selling, and long-term holders return to buying.
In the interim, they advised traders to be cautious when making asset entries.
“In the coming months, it’s wise to exercise caution and steer clear of high-risk trades.”
Prior to Bitcoin’s ascent to $109,000 on January 20, shortly before US President Donald Trump’s inauguration, short-term holders increased their supply while long-term holders reduced theirs by selling, they noted.
After reaching the $109,000 mark on January 20, there was a reduction of approximately 100,000 BTC in long-term holder supply over the subsequent 30 days, with an even more substantial decline occurring in December when Bitcoin first crossed the six-figure threshold.
Bitcoin has decreased by 1.43% within the last week. Source: CoinMarketCap
On December 1, long-term holder supply was at 15.2 million BTC, just four days before Bitcoin hit $100,000 on December 5, according to data from Bitbo. By December 20, this figure dropped to 14.7 million.
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At the time of writing, the long-term holder supply has decreased to 14.4 million BTC, down 800,000 BTC since December 1.
Bitcoin fell below $100,000 on February 4 due to concerns regarding a potential trade war stemming from Trump’s announced tariffs. It subsequently dropped even further to $85,000 when the Wall Street opened on February 27 as markets reacted to the confirmation of new US tariffs.
Source: Timothy Peterson
Later on that day, the asset fell below the vital $80,000 threshold, wiping out nearly all gains acquired since Trump’s election on November 5.
Currently, Bitcoin is trading at $87,100, as reported by CoinMarketCap.
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This article does not provide investment advice or recommendations. All investment and trading activities carry risks, and readers should conduct their own research prior to making any decisions.
