Bitcoin holders continue to accumulate during price dips, while short-term holders are buying into surges driven by FOMO (fear of missing out), signaling a bullish outlook for 2025, according to crypto analyst IT Tech.
Long-term Bitcoin holders (LTH)—those holding Bitcoin for over 155 days—are showing strong conviction, with their dominance “remaining high,” as stated in a January 24 analysis from CryptoQuant. IT Tech noted that long-term holders “continue to accumulate during price declines and strategically take profits during upward trends.”
Short-Term Holder Behavior Indicates Optimism for 2025
On the other hand, short-term holders (those holding Bitcoin for less than 155 days) are demonstrating increased confidence in Bitcoin’s upside momentum. IT Tech highlighted that these holders are often driven by FOMO, entering the market when prices rise. This behavior is seen as a positive indicator for Bitcoin’s price over the next 12 months, with short-term holders contributing to a “bullish tone” for the upcoming year.
Throughout January, Bitcoin hovered around the psychological $100,000 price level, briefly dipping below it while reaching a new all-time high above $109,000 on January 20, just ahead of Donald Trump’s inauguration as US president. At the time of publication, Bitcoin’s price stands at $104,390 according to CoinMarketCap, while the average long-term holder’s cost per Bitcoin is $24,639. This means the average holder is currently profiting over four times the original investment, according to Bitbo data.
The short-term realized price is $90,541. On-chain data from Checkonchain, a Bitcoin analysis tool, revealed that 80% of short-term holders were back in profit following Bitcoin’s recovery above the $100,000 mark. Earlier in January, the supply of short-term holders in loss dropped to 65% before Bitcoin rebounded.
While long-term holders occasionally take profits during upward trends, IT Tech explained that these sell-offs shouldn’t be concerning. In fact, these pullbacks can create “healthy opportunities for new accumulation.” In a separate analysis on January 24, CryptoQuant contributor Crazzyblockk noted that long-term holders have largely refrained from significant selling, reinforcing strong HODLing sentiment despite market fluctuations. The analyst pointed out that only 18% of Bitcoin deposits into Binance are from long-term holders, further suggesting their reluctance to sell.
What The Author Thinks
While short-term FOMO-driven entries may seem speculative, they play an important role in fueling Bitcoin’s momentum, especially when combined with strong long-term holding sentiment. The consistent accumulation by long-term holders and strategic profit-taking indicates a healthy market where pullbacks create opportunities rather than fear. As long as this balance of accumulation and profit-taking persists, Bitcoin’s outlook for 2025 remains strong, signaling continued growth for the asset.
