Short-Term Holders Demand For Bitcoin Rebounds, Suggesting Strong Optimism About BTC's Potential For Growth

Amid the recent renewed upward price movement in Bitcoin, the demand for the largest cryptocurrency asset among short-term holders has witnessed a notable rise

As Bitcoin prices continue their recent rally, demand for the top crypto asset among short-term holders has seen a resurgence, indicating optimism about BTC’s potential for growth in the near term.

According to macro researcher and author at leading on-chain firm CryptoQuant Axel Adler Jr., the average demand for Bitcoin from short-term holders has resumed following a period of decline, as spotted by positive advances in the Short-Term Holders Supply 30D Change metric.

The market data shows that these investors, typically defined as those who have held BTC for less than 155 days, are once again actively buying the cryptocurrency. This rebound suggests a renewed interest from retail holders, possibly sparked by optimism over a potential price rally in the coming days.

After analyzing the Short-Term Holders Supply 30D Change metric, Adler highlighted that the indicator has shown a rebound over the past 18 days, despite the supply change oscillator remaining in the negative territory. He noted that the supply saw a 15% growth, or an average daily increase of 0.95% during this period.

This development is being closely watched by investors and traders, as a resurgence could signal a potential price increase, especially amid uncertainty in the broader market.

In a separate recent post, Adler noted that demand from short-term holders is increasing as volatility gradually returns to the market. “As volatility has returned to the market, and it works both ways, be sure to assess risks when making trading decisions,” he said.

Adler also mentioned that the leveraged volume on top of 3 crypto exchanges is currently at 32%, and a spike above 55% could lead to a “cascade of liquidations.”

Anticipation Builds for a New All-Time High for BTC

As anticipation for a major rally continues to grow, market expert and Chief Information Officer (CIO) of MN Consultancy Michael Van De Poppe has examined the recent performance of BTC, suggesting that the digital asset could be set to reach a new peak soon.

Highlighting that Bitcoin is in a period of consolidation, Van De Poppe noted that the markets may “see some weakness,” but considering upcoming pivotal events like the United States Presidential election and a potential rate cut from the Federal Reserve (Fed), he is optimistic that the events could spark major price movements for Bitcoin in the upcoming weeks.

“I still have to say that a new all-time high is close,” Van De Poppe added.

At the time of writing, BTC is trading at $67,899, showing a 0.70% decrease in the past day and a 2% drop in the past week.

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