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Analysis: Strong hands taking over weak hands in BTC holdings, US election does not affect Bitcoin's rise

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Analysis: Strong hands taking over weak hands in BTC holdings, US election does not affect Bitcoin

According to data from the cryptocurrency analysis platform CryptoQuant, since late May, short-term Bitcoin holders have been decreasing, indicating a weakening market demand. Meanwhile, long-term holders continue to accumulate holdings despite the selling pressure from short-term holders.

CryptoQuant: Strong Hands Taking Over Weak Hands' Holdings

Julio Moreno, the head of research at CryptoQuant, told The Block that short-term holders have not yet started accumulating Bitcoin and are still selling, indicating a weak demand for Bitcoin in the market. However, long-term holders continue to accumulate Bitcoin during this period.

He emphasized:

If demand for Bitcoin were to increase again, the situation might reverse, with short-term holders re-entering the market and buying Bitcoin from long-term holders.

Short-Term Bearish, Medium to Long-Term Bullish

IT Tech, a contributor to CryptoQuant, stated that the flow of funds shows a shift from "weak hand short-term holders" to "strong hand long-term holders," which is typically seen as a signal of market stability. This shift may lead to a rise in Bitcoin prices and stabilize the market in the medium term or prepare for a potential market rebound. However, the selling pressure from short-term holders may still exert pressure on Bitcoin prices in the short term.

Similar institutions will continue to try to present data favoring the market, such as CryptoQuant indicating the end of short-term holder and miner selling at the end of March and a rebound in related indicators in July.

Has Bitcoin Bottomed Out? CryptoQuant: Indicators Have Rebounded, Stablecoin Liquidity Remains a Key Obstacle

Was Trump's Debate Loss Bearish?

It has been a day since the U.S. presidential candidate debate, and in reality, the price of Bitcoin has remained almost flat in the past 24 hours.

Trump-Biden Debate Set to Begin at Nine, Bitcoin Rises to 57K

Despite Harris being generally seen as the better performer, Matrixport believes that regardless of who wins, an increase in Bitcoin is inevitable:

While everyone is concerned about the impact of the new U.S. president on Bitcoin, the actual impact may be more reflected in the regulation of the Bitcoin ecosystem rather than Bitcoin itself. Cryptocurrencies experienced strong growth during the Republican administration from 2016 to 2020 and the Democratic administration from 2020 to 2024. Therefore, despite the media hype surrounding the upcoming election, Bitcoin may continue to perform positively regardless of who takes over the White House.