The Bitcoin (BTC) market is mainly controlled by three classes of investors; holders, cruisers, and traders. The behavior of these groups largely has an underlying impact on the Bitcoin price depending on whether it is during the bear or bull season. Essentially, long-term holders tend to take profits during bull markets and accumulate during bear seasons.

Short-term holders, otherwise known as cruisers are mostly exposed to the Bitcoin market between 1-12 months. The interesting fact about this cohort is that they offload during bear markets and accumulate during bull seasons.

Bitcoin On-chain Behavior

According to a Bitcoin on-chain analysis provided by Intotheblock, the recent surge of BTC price to around $30k did not coincide with an increase in short-term holders as expected. Instead, Bitcoin’s long-term holder growth continued during the past few months. The phenomenon was a huge contrast with 2019 when Bitcoin’s return to $11k resulted in a significant boost in short-term holders.

With long-term holders’ continued demand for the top coin, the on-chain analysis conducted by Intotheblock concludes a possible further correction in the near term. Moreover, the amount of Bitcoins held by short-term holders is currently less than prior to the 2021 bull run and continues to significantly decline.

1/ Long-term holders are persistently accumulating Bitcoin. The amount of $BTC held by short-term holders (<12 months) is currently less than prior to the 2021 bull run and continues to decrease. An increase in short-term holders has often coincided with surging prices #BTC

— IntoTheBlock (@intotheblock) July 28, 2023

Price Action

A significant group of crypto experts believes Bitcoin could fall as much as $25k as its dominance sheds to the altcoin market. Nonetheless, there are high chances of the bulls pushing Bitcoin price beyond $32k fueled by inflation and heightened institutional demand.