Bitcoin holders appear to be accumulating more bitcoin (BTC), following the recent rally, which saw long-term holders decreasing their position sizes.
According to on-chain data and intelligence platform Glassnode, long-term bitcoin holders have begun accumulating the cryptocurrency once again. Previous data indicates that long-term holders had been selling or decreasing their position sizes since October 2020.
The decrease in holdings began once bitcoin had crossed the $12,500 mark. This accelerated and reached a peak in mid-January 2021. Likely around the time bitcoin broke $40,000.
The offloading continued until the beginning of April, and it now looks like long-term bitcoin holders are accumulating the digital asset once again.
Bitcoin’s consistent bullish momentum
The reason for the shift from decreasing position size to increasing position size is likely due to bitcoin’s consistent bullish momentum. It is likely that bitcoin may not see a major dip back down below $40,000. This would mean holders are looking to get back into bitcoin before it continues to climb in price.
Bitcoin has seen an impressive 400% gain in price since the sell-off began, climbing from $12,500 up to its recent high of $64,800.
With the current bull market seeing huge gains across the board, bullish sentiment for bitcoin has never been this strong. Cryptocurrency adoption is reaching new levels as U.S. cryptocurrency exchange Coinbase recently listed publicly on the Nasdaq, making it the first cryptocurrency-centric company to do so.
The evaluation of the company makes it one of the biggest in the market based on share price.
However, while long-term holders of bitcoin may be accumulating once again, data suggests that bitcoin dominance is on the decline. The rapid decline in dominance will see traders moving their funds into altcoins and other major caps.