Bitcoin Supply Crunch: Long-Term Holders Keep Coins Off Market

The supply of Bitcoin has tightened significantly as long-term holders continue to keep their coins off the market. Data from River Financial shows that 81% of circulating BTC has not moved for at least six months, leaving fewer coins available for active trading.

This means most Bitcoin holders are holding onto their coins rather than selling or moving them between wallets and exchanges. The trend has become more visible as Bitcoin recovered roughly 50% from its June lows and moved above $87,000.

The shrinking active supply is largely linked to long-term accumulation. River Financial data shows long-term holders have added more than 3 million BTC since 2020. Meanwhile, institutional investors are also adding to their holdings through spot Bitcoin ETFs, which recorded $134.51 million in net inflows, bringing total weekly inflows to nearly $2.6 billion.