Bitcoin Long-Term Holder Supply Decline Slows Sharply
The pace of decline in Bitcoin long-term holder supply has slowed significantly over the past month, easing selling pressure on the market. According to Axel Adler Jr., an on-chain analyst, the drop in long-term holder supply has narrowed from 105,900 BTC on August 30 to 47,800 BTC a week ago and now stands at 21,700 BTC as of September 20. This represents about one-fifth of the level seen at the end of last month.
Despite the slowdown in supply decline, coins recently moved by long-term holders were traded, on average, slightly below their purchase price when Bitcoin rose 5.6% from $76,800 to $81,200 last week. This indicates that a substantial share of the recently moved supply consisted of Bitcoin bought at higher prices.
Adler emphasized that while the amount of supply leaving long-term holders is shrinking, the coins still moving remain underwater. He also noted that it will be crucial to watch whether long-term holder supply returns to growth and whether profit-and-loss conditions improve in the coming weeks.