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Bitcoin, the largest cryptocurrency by market capitalization, hit $37,987 in the trading session on Wednesday, approaching a one-week high. So far this year, it has increased almost 125%.
Bitcoin (BTC) and numerous altcoins have recovered to levels last seen a week ago, reversing virtually all losses from a $300 million liquidation event earlier in the week.
Bitcoin approached $38,000, a level last seen in May 2022 as part of a prolonged rally fueled by hopes of fresh demand for the leading cryptocurrency from exchange-traded funds.
At the time of writing, the market is witnessing some profit taking, with Bitcoin and other altcoins reversing their gains from the previous day.
BTC is up 2.33% in the last 24 hours to $36,942 at the time of writing.
This is what happened recently
A recent analysis from the on-chain analytics provider CryptoQuantum offers some context on what happened to the price of Bitcoin.
In a quick report, CryptoQuant noted some interesting patterns among Bitcoin holders as BTC prices have skyrocketed in recent weeks.
In the analysis, the long- and short-term behavioral patterns of Bitcoin holders were examined.
A pattern was detected: long-term holders stay while short-term holders sell.
What’s more intriguing is that Bitcoin sold by short-term holders appears to have been bought by long-term holders. This is more like a trade between the two groups, with long-term investors benefiting from short-term ups and downs.
Long-term holders appear to be taking advantage of the recent BTC price swing to acquire more Bitcoin. The MVRV indicator, which remains below two, indicates that long-term investors are in no hurry to withdraw money.
