$15M Bitcoin Long-Term Holders Signal Conviction Amid Bear Market

Fidelity Digital Assets reports that the supply of Bitcoin (BTC) held by long-term investors has reached an all-time high, reaching nearly 15 million coins. This cohort is considered a key indicator of investor conviction, according to Research analyst Zack Wainwright.

The data shows that nearly 40% of these long-term holders are underwater, with their assets at an unrealized loss. However, most of them have kept their exposure anyway, suggesting a commitment to the market.

Historically, the supply of long-term holders has expanded during bear markets and contracted during bull markets. The current record high in this metric is seen as a sign that prices may be approaching past-cycle bottom levels.

Fidelity's analysis suggests that the conviction of these long-term holders remains strong, but it stops short of calling a bottom in the market. In fact, the firm warns that more downside is still possible.

Benjamin Cowen, a member of BeInCrypto's Market Intelligence experts council, has predicted that the fourth-quarter bottoming window could see a low near $44,000.