Bitcoin nears $90k, long-term holders wake up

Bitcoin’s Rally Continues as Crypto Market Hits New All-Time High

Bitcoin’s (BTC) rally post-U.S. elections remains strong, with the cryptocurrency reaching a new all-time high (ATH) of $89,604 early on Tuesday. At this price, Bitcoin’s market capitalization surged to $1.77 trillion. However, the asset saw a slight dip as long-term holders began moving their positions.

At the time of writing, Bitcoin is trading at $88,400, with $133 billion in daily trading volume. The market remains active, with a significant rise in Bitcoin’s two-year dormant circulation, which increased by 130% in the past 24 hours, reaching 13,589 BTC. Additionally, addresses holding Bitcoin for over three years saw a surge of 154%, with 8,235 BTC moving during the same period.

According to data from Santiment, Bitcoin’s Market Value to Realized Value (MVRV) ratio climbed to 178%, suggesting that the average Bitcoin holder is seeing a 178% profit at the current price.

This surge in dormant circulation, particularly from long-term holders, is reminiscent of a similar event on August 29, when the price of Bitcoin dropped from $60,000 to $54,000 within a week due to profit-taking by these holders.

Crypto Market Boosted by Bitcoin’s Momentum

Bitcoin’s latest ATH has sparked renewed optimism across the crypto sector, pushing the global crypto market capitalization to a new all-time high of $3.11 trillion, according to CoinGecko. This marks a 4.7% increase in the last 24 hours alone.

The cryptocurrency market saw a massive $765 billion surge in value over the past week. Additionally, crypto-related investment products experienced their highest year-to-date inflows, totaling $31.3 billion, while assets under management rose to $116 billion.

The bullish trend has been fueled by growing interest from institutional investors, especially after Donald Trump’s victory in the U.S. presidential election, which has further fueled positive sentiment in the market.