Bitcoin has seen some activity in recent markets, driven by long-term holders and changing U.S. policies. On January 26, 2025, Bitcoin trades at $104,960 after the realization of close to a $5 billion profit. Undoubtedly, such an uptrend explains the influence of the long-term holders, where these holders, through a strategic accumulation of Bitcoin on price dips, further stabilize the market.
In the Bitcoin market, long-term holders are taking over. According to data from CryptoQuant, LTHs have “diamond hands,” holding on through market ups and downs.
This behaviour softens the market against volatility, as LTHs tend to accumulate Bitcoin when prices drop. On the other hand, short-term holders are more likely to sell quickly, contributing to market fluctuations.
Recent trends have seen the dominance of LTHs reduce the influence of short-term volatility. This change might bring healthier market conditions where LTHs take strategic profit rather than LTHs engaging in impulsive trading. According to analysts, this sentiment could set the scene for a bullish sentiment as we go further into 2025.
Impact of U.S. Policies on Bitcoin Sentiment
Perhaps the bigger driver shaping the outlook for Bitcoin in the market today is driven by U.S. policies. More specifically, the President of the United States has recently signed a string of executive orders, all looking toward the space of digital assets, to champion a pro-crypto agenda, setting in place the Presidential Working Group on Digital Asset Markets in charge of considering strategic national digital asset stockpiles.
Optimism among investors in this project rose high. According to reports, as of last weekend, U.S. BTC spot ETFs witnessed $1.76 billion in weekly inflows, depicting very strong investors’ confidence. Major funds, including iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund, have reported large net inflows, underlining this scenario.
Market Trends and Price Projections
According to market analysis, Bitcoin is consolidating at $104,000 with a major support area at $92,210 and resistance at $106,143.
A nearly $5 billion profit-taking event in the very recent past could mean that the short-term move would be dictated by selling pressure. But in the good market atmosphere, provided there are continually positive US policies in investors’ sentiments, Bitcoin will likely go for $110,000.
The Bitcoin Act, introduced by Senator Cynthia Lummis, would allow a U.S. Strategic Bitcoin Reserve to purchase one million BTC over five years potentially. If such a measure is passed, then this could further help to stabilize the price of Bitcoin, ensuring that there is a huge pool of assets that are, in essence, backed by the government.
On the other hand, it is the strategic behaviour of the long-term holders, along with the supportive policies of the U.S., that has given Bitcoin its course. Dominance by LTHs could buffer the market against volatility, while recent ETF inflows point to increased investor optimism. With Bitcoin navigating these developments, price appreciation towards the $110,000 level is in the books, provided that this market tone continues to stay upbeat.
