Despite strong inflows into global ETFs, growth in the stablecoin market, and favorable regulatory developments in the US, Bitcoin has remained range-bound between $100,000 and $110,000. This stability, according to Alexander Blum, an investment advisor at Two Prime, can be explained as a shift in ownership from short-term speculators to long-term investors.
He notes that heightened geopolitical risks have prompted leveraged traders to unwind their Bitcoin positions. Conversely, the resulting price dips have also made it a good time to buy for investors who plan to hold the crypto in the long run.
Data from Glassnode reveals that newer wallets (those holding BTC for less than a year) have increasingly taken profits, accounting for roughly 83% of realized gains on Monday. In contrast, long-term holders (those with positions older than 12 months) saw record profit-taking last week, totaling $1.2 billion.
Blum says this difference in trading habits is keeping Bitcoin's volatility in check and stopping it from surging. However, Markus Thielen, founder of 10x Research, suggests that a breakout could still be on the horizon, leaving room for potential gains in the near future.