The price of Bitcoin hovered around the $94,000 range over the weekend, although it did not fall below the key level of $92,000. However, there are still no signs of a breakthrough in the upward trend, and the market remains uncertain about future market movements.
Regarding the recent trend of Bitcoin, well-known trader and KOL Ansem recently hinted at buying at a low price in a post on X. He stated:
“I feel that Bitcoin might reach a very frustrating low point at this price range (around $91-92K), which looks like it is about to collapse but actually won’t. I plan to go long before the inauguration ceremony to see if the market is overreacting to the hawkish comments from the Federal Reserve and the panic sell-off by the Department of Justice.”
When answering questions from netizens, Ansem further explained that the reason for going long before the inauguration ceremony is to take advantage of the current panic sentiment and position oneself in a bullish manner. He said:
“Currently, the market only factors in approximately one rate hike for 2025, while the US Dollar Index (DXY) and the 10-year US Treasury yield have been rising. The logic behind this bet is that some uncertainty and panic sentiment may fade after the inauguration ceremony, depending on the content of Trump’s speech.”
At the same time, recent data from Glassnode also indicates a change in the trend of Bitcoin ownership. The data shows that the proportion of Bitcoin wealth held by new holders (defined as tokens held for less than three months) has increased significantly, currently accounting for 49.6% of network liquidity. This trend highlights the increasing participation of new capital in the market.
This dynamic indicates that new demand is entering the market to absorb selling pressure, providing a stabilizing force for the market even in times of high volatility. This behavior reflects the market’s widespread confidence in the long-term potential of Bitcoin, as new participants take advantage of price declines to establish or expand their positions.
The transfer of Bitcoin wealth from seasoned holders to new market participants is often a precursor to significant price movements in the next stage. As Bitcoin continues to consolidate and accumulate momentum, the influx of new funds may become a key driving force for the next wave of upward momentum. In the days to come, the market will witness whether the optimism of these new investors can translate into sustained upward momentum, or if the market will face more adjustment pressure.