The director of research at the analytics platform CryptoQuant said that the number of bitcoins owned by short-term holders is decreasing. Long-term hodlers are accumulating the asset, which will have a positive effect on the market, the expert believes.

Julio Moreno is confident that if demand for the first cryptocurrency increases, short-term holders will start buying from long-term ones:

“Increased accumulation by long-term holders will stabilize prices and set the market up for a rebound, while selling by short-term holders will put downward pressure on the price of Bitcoin. BTC passes from weak to strong hands, which indicates that the market has finally entered a calm state.”

Short-term investors in the first cryptocurrency began to actively reduce their positions in August, which led to a correction and subsequent stabilization of the Bitcoin price within the range of $54,000 – $57,000.

Currently, institutional investors have adopted a wait-and-see attitude and will make decisions on selling or buying the asset after the US Federal Reserve System (FRS) meeting on September 18, where a reduction in interest rates may be announced, the analyst believes.

Earlier, the founder of the investment company Ikigai Asset Management, Travis Kling, stated that a significant part of the crypto community is now less involved in the life of the market than several years ago, due to a decline in faith in the potential of crypto projects.