Bitcoin Diamond Hands: Bitcoin’s Resilience Above $100,000

As Bitcoin continues to maintain strength above the critical $100,000 mark, some traders may be tempted to capitalize on the ongoing rally by taking profits. However, recent on-chain data analysis suggests that long-term holders, who have weathered past market storms, are not among those looking to cash out—indicating a potentially bullish outlook for Bitcoin’s continued growth.

Bitcoin Diamond Hands Show Unshaken Confidence: Bullish Signal?

Long-term Bitcoin holders, defined as those who have held their coins for at least seven years, are not showing signs of selling anytime soon, according to a recent analysis by the pseudonymous Crypto SunMoon, a respected author within the CryptoQuant community. In stark contrast to previous rallies, such as the 2017-2021 boom, when long-term holders began selling ahead of the market’s peak, current on-chain data shows that these holders are holding firm.

Crypto SunMoon pointed out that, during previous cycles, major inflows to centralized exchanges from long-term holders were typically a precursor to the end of a bullish phase. However, the latest data indicates that we are nowhere near this critical selling point. The most recent significant inflows from long-term holders occurred in late Q1 2024, but these were far less substantial than the wave of selling seen during Bitcoin’s previous all-time high in November 2021.

This absence of large-scale selling by long-term holders paints a picture of confidence, suggesting that the current rally is not yet in its final stages. Instead, selling pressure is largely coming from what the community often refers to as “paper hands” — short-term traders more susceptible to market volatility.

Also read: Bitcoin Price Prediction

Ethereum and Litecoin Holders Follow Suit

This trend is not unique to Bitcoin. A similar pattern is evident in some of the largest altcoins, including Ethereum and Litecoin. According to recent on-chain data, over 70% of Ethereum and Litecoin holders have held their positions for at least 12 months. This widespread holding behavior further supports the notion that a significant portion of the market remains confident in the long-term potential of these assets, suggesting that the current bull market may have further room to run.

Also read: Bitcoin Sinks Below $100,000 as Trump’s Tariff Escalation Sparks Market Uncertainty

Stablecoin Inflows Point to Continued Bullish Momentum

While Bitcoin’s inflows to centralized exchanges may appear subdued, the growing influx of stablecoins like USDT and USDC suggests that the broader market sentiment remains optimistic. In the past three months alone, the supply of USDT on centralized exchanges surged by 40%, reaching an all-time high of over $43 billion. This is accompanied by a broader increase in stablecoin supply, which has risen from $160 billion in early November 2024 to $224 billion as of today, according to data from CoinGecko.

Stablecoins are often viewed as a safe haven in volatile markets, and their rising supply is seen as a bullish indicator, signaling that investors are preparing for sustained growth. USDC, in particular, has seen the fastest growth among stablecoins, further bolstering expectations of continued positive momentum for both Bitcoin and major altcoins.

Also read: Bitcoin Traded at a Discount: A Pivotal Moment in Market Movements

Conclusion

With long-term holders demonstrating continued confidence and stablecoin inflows signaling strong investor interest, Bitcoin’s performance above $100,000 may be far from its peak. The absence of significant selling from those who have held Bitcoin for years suggests that the rally could continue, driven not by panic-driven traders, but by sustained confidence from both long-term holders and a growing base of investors eager to ride the wave of this extended bull market. For Bitcoin bulls, these indicators point to a promising outlook for the future.

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FAQs

1. Why is Bitcoin holding above $100,000 seen as a bullish sign?

Bitcoin’s ability to maintain strength above $100,000 suggests robust market confidence. Long-term holders, often referred to as “diamond hands,” are not selling, indicating that the current rally may have further upside potential.

2. What does on-chain data reveal about long-term Bitcoin holders?

On-chain analysis shows that Bitcoin investors who have held for at least seven years are not engaging in significant selling. Unlike previous cycles where long-term holders offloaded BTC near market peaks, current data suggests they are maintaining their positions, reinforcing a bullish outlook.

3. How are Ethereum and Litecoin holders behaving in comparison?

Ethereum and Litecoin holders are exhibiting similar long-term confidence, with over 70% of investors in both assets holding for at least 12 months. This trend suggests that the broader crypto market remains optimistic, supporting the idea that the current bull cycle is not yet over.

4. What role do stablecoins play in Bitcoin’s price action?

The increasing inflows of stablecoins like USDT and USDC onto exchanges indicate growing investor interest in crypto markets. A 40% rise in USDT supply on exchanges, along with an overall stablecoin market increase from $160 billion to $224 billion, suggests that liquidity is available for further Bitcoin and altcoin accumulation.

5. Could Bitcoin still experience a major correction despite these bullish indicators?

While bullish indicators suggest continued momentum, Bitcoin remains susceptible to macroeconomic factors, regulatory shifts, and unexpected market volatility. However, as long as long-term holders maintain their positions and stablecoin liquidity remains high, Bitcoin’s outlook remains strong.