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The FOMO Of Short-term Bitcoin Traders Fuels The Bullish Trend

Sat 25 Jan 2025 ▪ 3 min read ▪ by Fenelon L.
Getting informed Bitcoin (BTC)

The buying frenzy of short-term bitcoin holders, combined with the constant accumulation of long-term investors, creates a particularly favorable context for 2025. This dynamic could keep the BTC price above 100,000 dollars in the coming months, according to the latest analyses.

A trader panics in front of the Bitcoin chart

FOMO Fuels the Bitcoin Rally in 2025

Short-term bitcoin traders, holding their assets for less than 155 days, are ramping up their purchases during the bullish market phases. This behavior, driven by the fear of missing out (FOMO), actively supports the bitcoin price.

According to CryptoQuant’s IT Tech analyst, this dynamic of speculative buying strengthens the positive outlook for 2025.

Bitcoin has repeatedly breached the symbolic threshold of $100,000 in January, reaching a historic peak of $109,000 shortly before Donald Trump’s inauguration. With a short-term realized price of $90,541, 80% of short-term holders are now in profit, according to Checkonchain. This profitability boosts their confidence and encourages new purchases.

However, this dynamic is not limited to speculation. Temporary market pullbacks also offer accumulation opportunities, allowing short-term holders to further support price consolidation.

A Solid Base Maintained by Long-Term Investors

Long-term bitcoin investors (holding for more than 155 days) maintain a strategy of constant accumulation, buying on dips and taking measured profits during rises. Their average purchase price of $24,639 already ensures them a return of x4 on their investment, according to Bitbo data.

This ‘HODL’ (long-term holding) approach stabilizes the market. On-chain data from January 24, analyzed by Crazyblockk of CryptoQuant, reveals that only 18% of bitcoins deposited on Binance come from these historical investors, confirming their strong conviction.

According to IT Tech, the occasional sales by these long-term investors create buy opportunities without compromising the bullish trend. This synergy between long-term holders and short-term traders creates a favorable environment for bitcoin in 2025.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.