Why Bitcoin’s New Bull Run Is Still Happening

An important Bitcoin (BTC) bull run indicator that is used to predict new price rallies is still not forthcoming. It is about the ratio of long and short term investors in the market. Historically, a growth in traders and short-term investors is a strong indication of a BTC price increase. Surprisingly, relatively few new investors are entering the market, despite the price rising above $30,000 in recent weeks.

Within the crypto market, we distinguish different types of Bitcoin holders. Long-term holders, for example, have strong confidence in the currency and usually do not sell their shares, even if the price falls sharply. These are usually investors holding their coins for more than a year. ‘Cruisers’, on the other hand, are investors who have been active in the market for some time, but cannot yet be regarded as long-term investors. Finally, we have the so-called ‘traders’, who are short-term investors who trade currencies daily, and in some cases even several times a day.

Number of long-term investors is growing

The image below illustrates the percentage distribution of long-term investors, cruisers, and traders within the Bitcoin market over the past 9 years. The data clearly shows that the share of long-term investors has steadily increased over time. This trend is considered a positive development for the network, as this group of investors is less inclined to sell their coins quickly, potentially making the market less volatile. To illustrate: in 2014 long-term investors accounted for about 40% of the market, while that share is now well above 70%.

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