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- On-chain data reveals reluctance from Bitcoin (BTC) holders to sell after the recent correction instigated by the GBTC sell-off.
- Key developments in the coming months point to a bullish outlook, encouraging holders to hold on to their digital assets.
On-chain data has shown that Bitcoin (BTC) holders are waiting to ride the upcoming bullish wave, with very few willing to sell. Following the post-ETF correction that threatened to see BTC drop to the $30,000 lows, a Glassnode on-chain analyst has revealed that BTC holders have developed diamond hands in anticipation of some key developments that could propel prices to an all-time high.
After the approval of the first Bitcoin spot ETF, the digital asset rallied to $49,000 but subsequently dropped to a low of $38,000 before staging a recovery. It was clear to investors that the event was a classic sell-the-news event.
Glassnode’s lead on-chain analyst, who goes pseudonymously as Checkmatey, has shared a video that highlights the change in sentiments following the correction and subsequent recovery.
The approval of a suite of new #Bitcoin ETFs appears to have become a classic sell-the-news event, triggering BTC prices to drop by -19%. This makes for an ideal opportunity to assess how investor profitability has changed over recent weeks.
Watch the latest Week On-Chain 👇 pic.twitter.com/IfS9gVoYM0
— glassnode (@glassnode) January 24, 2024
The analyst reveals that in previous peaks, the digital asset has witnessed corrections of 25%, 30%, sometimes 60%, and 50%. However, after the recent peak, Bitcoin only saw a 19% correction, indicating that holders are reluctant to sell their coins.
Even in the post-ETF [phase], which really did get a little bit frothy, we’ve only seen about a 20% correction. So in a way, it’s telling you that there is this interesting balance of both support on the buy side, but also a very, very strong reluctance by existing holders to actually liquidate their coins.
At the time of this writing, Bitcoin is trading at $43,400 as it stages a bullish comeback. In the last 24 hours, the crypto king has gained nearly 3% and is up by nearly 9% in the last 7 days. Making up nearly half of the total market cap, the resurgence of Bitcoin has inspired the rest of the market, which is up by nearly 3% to $1.7 trillion.
Bitcoin (BTC) Holders’ Bullish Outlook
Key upcoming developments hold great promise for BTC. The most significant one is the upcoming April halving. Historically, this is the most bullish event in the digital asset’s cycles. Based on this event, banking giant Standard Chartered gave a very bullish prediction for the next two years. The report notes that the Bitcoin price could rally to $120,000 by the end of 2024.
Additionally, this year will see 64 countries, including the United States, hold elections, signaling a turbulent political and economic phase. This could further lead to regulatory changes, with leaders increasingly succumbing to the pressure of the growing popularity of crypto.
The Bitcoin spot ETFs remain a key facet in price predictions, taking comparisons from gold ETFs. Standard Chartered predicts that Bitcoin could enjoy price gains similar to gold in the seven years following the introduction of ETFs. However, they anticipate these gains occurring over a shorter period of one to two years.
People ask me: What happened when the first gold ETF launched in the US? pic.twitter.com/wJSchhWHvy
— Matt Hougan (@Matt_Hougan) October 23, 2023
The bank envisions Bitcoin reaching over $100,000 by the end of the current year.
