Short-term bitcoin [BTC] Owners can drive the next bull run – that’s how it works

• BTC’s next bull run could occur as short-term holders spend less and accumulate more.
• The last few days have been marked by the departure of “weak hands”.

According to pseudonymous CryptoQuant analyst Crazzy blockk, an assessment of key on-chain metrics suggested that in the short term, Bitcoin [BTC] Holders could be instrumental in driving the next bull run for the king coin if they continue to accumulate and spend less.

To reach this conclusion, the analyst examined BTC’s metrics for Spent Output Profit Ratio (SOPR), Adjusted Spent Output Profit Ratio (aSOPR), and Unspent Transaction Output (UTXO).

According to the SOPR, ASOPR, and STH-SOPR metrics, short-term holders have spent their profits. This has led to a surge in BTC accumulation and a reduction in selling pressure over the past few weeks, Crazzy blocck noted.

Read Bitcoins [BTC] Price prediction 2023-24

He further said:

“If the short-term holders are interested in accumulating and entering at this level in the coming months and are not interested in selling on exchanges for price growth, it will be a bullish sign for Bitcoin. These factors usually result in short-term holders turning into long-term holders, in line with past bitcoin price cycles.”

Source: CryptoQuant

Surrender is the word of the day

February 24th was the day reported that in January 2023 the annual rate of increase in the personal consumption expenditure (PCE) index in the United States accelerated to 5.4%, from a revised increase of 5.3% in the previous month.

Goods prices increased by 4.7% after 5.1% in December, while prices for services increased by 5.7% after 5.4%.

The 5.4% year-on-year increase in the PCE index in January 2023 suggests that prices of goods and services have increased, which could lead to a fall in consumer spending power.

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Following the announcement, short-term BTC traders began selling their holdings as a precaution against potential losses should BTC’s price fall significantly. According to data from CoinMarketCap, the price of BTC has fallen 3% since then.

According to CryptoQuant analyst JayBot:

“Perhaps bitcoin can continue to rise after it overcomes selling from short-term holders.”

Source: CryptoQuant

Additionally, an assessment of BTC’s Network Profit/Loss Ratio (NPL) confirmed increased sell-offs by “weak hands” over the past few days. According to data from HolyBTC’s NPL suffered a significant drop on Feb. 25.

The plunges in NPL metrics are often associated with brief periods of “weak-hand” capitulation and the resurgence of “smart money” in the market.

As a result, these dips are usually accompanied by local rallies and bouts of price recovery. In the last 24 hours, the value of BTC is up 0.4%.

Source: Santiment

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