Bitcoin Surpasses $100,000 Mark for First Time in History
Bitcoin has crossed the $100,000 price mark for the first time, establishing itself again as the largest cryptocurrency by market capitalization. The all-time high is approximately $103,679. This milestone has led to a comprehensive analysis of its supply distribution, providing insights into the behavior of long-term and short-term holders.
Supply Distribution and Market Behaviour
An analysis from CryptoQuant’s analyst Crazzyblockk examines how this achievement affects Bitcoin's realized cap and overall market structure. The milestone reflects increased global adoption and investment confidence but raises questions about future market trajectories.
Bitcoin's supply is divided between two main groups: long-term holders (LTHs) and short-term holders (STHs). Currently, over 14.5 million BTC are held by LTHs, while nearly 5 million BTC belong to STHs. Despite the price increase, only 52% of Bitcoin’s realized cap is attributed to STHs, contrasting with previous peaks where this figure was typically above 80%.
Historically, during bear markets, the realized cap shifts toward LTHs as accumulation increases, signaling the end of bearish trends. Conversely, during bull market peaks, STHs dominate the realized cap due to speculative trading. The current situation shows a higher concentration among LTHs, indicating a deviation from traditional patterns.
Implications for Bitcoin's Market Momentum
The low realized cap held by STHs suggests reduced selling pressure, which may support sustained price growth. A significant proportion of Bitcoin held by LTHs indicates strong market confidence, potentially buffering against abrupt price corrections. This stability reflects long-term investor trust and minimizes speculative volatility.
Additionally, the supply distribution aligns with a long-term bullish outlook for Bitcoin. The lower participation of STHs in the realized cap suggests potential for further upward movement, allowing more capital to enter the market without triggering significant sell-offs.
The analyst concluded:
In conclusion, Bitcoin reaching $100,000 is a historic achievement, but the current supply dynamics suggest the potential for further upward movement, given the stability provided by LTHs and the relatively low participation of STHs in the realized cap.
Featured image created with DALL-E, Chart from TradingView