Bitcoin Faces Exodus of Short-Term Traders While Long-Term Confidence Grows

The latest data on the blockchain reveals that long-term holders are increasing their market involvement. In Kyle Doops’ opinion, long-term holders now have a realized cap of $9 billion. This level was last reached back in April 2025. Since long-term investors are ready to acquire Bitcoin rather than sell it, the market cap now stands at the price the purchases were completed. The graph provided by Doops outlines the falling number of short-term holders being replaced by an increasing number of long-term holders.

It shows that the main investors in the market are keeping a strong hold of their Bitcoin, instead of selling in search of profit. Legitimate traders who focus on short-term trading and profits have been sharply selling their assets, signaling they are leaving the market. Meanwhile, the narrow belief of those who hold Bitcoin for a short time could lead to less volatility. On the other hand, the long-term hodlers’ strong beliefs suggest they are confident in Bitcoin’s future.

In Kyle Doops’ opinion, Bitcoin is rapidly gaining value, and excitement is on the rise. The majority of investors holding Bitcoin recently are currently making a profit. Usually, when so many short-term holders are bringing in profit, large numbers choose to sell and pull back the price. Currently, the market is moving fast, but it could slow down almost instantly if investors turn away from profits. The Glassnode chart points out that, since short-term holders are losing money, a slight gain in Bitcoin could lead to greater sell-offs and a price drop.

Heavy Liquidations Reflect Volatility Amid Futures Market Activity

As a result of the support from long-term holders, the Bitcoin market is experiencing a lot of ups and downs. Recently, over $675 million worth of cryptocurrency has been liquidated within 24 hours. They mean that leveraged positions are being closed by the market due to sudden changes in prices and corrections. Great deals of liquidation happening at this time are typical for volatile markets, as many investors remain active in trading.

Futures trading on Bitcoin increases the swings of its price. According to Axel Adler, when the green bars are present on the chart, it shows that the Dominance Ratio is positive, which in some cases indicates an increase in long bets or a reduction in short bets. To make these factors clearer, Adler points to three main signs. According to Axel, the upward triangles represent a buyer entering a new position. The Red indicates the group is covering their short positions. Lastly, the long buildup with lots of buy activity by the dominant taker is symbolized by green arrows.

As a result of this futures activity, both traders opening long positions and those exiting short positions play a role in pushing the price upwards. Considering the extended buying pressure during the buildup, it is believed that futures markets could stay in a positive direction.

Implications for the Bitcoin Price Trajectory and Market Stability

Combining all of these indications gives insight into what will likely take place for Bitcoin soon. A rise in the realized cap of long-term holders means there are fewer incentives for sudden big sales by investors. By doing this, the economy can maintain stable prices and rely on steady growth.

Concurrently, with activity from active traders lowering and their realized cap falling, there appears to be less speculative trading. Often, this tends to calm down the market. At the same time, since liquidations and active futures trading are high, prices tend to fluctuate whenever leveraged traders are involved.

Having considered the futures market data, one can notice that traders are becoming cautiously optimistic. Investors piling into long positions trust the market’s growth, yet wash-off events remind everyone that dangers and sudden changes are possible in the market.

Overall, these reasons suggest that Bitcoin is moving from a quick-trading market to a more traditional one. Holders of large positions remain steady, short-term traders are being cautious, and futures trading mainly involves dealing with price swings. Meanwhile, investors should stay aware of such dynamics and closely monitor price swings in the coming weeks.