Long-Term Bitcoin Holders Now Control Over 20% Of Supply
On-chain data from Glassnode reveals that Bitcoin holders who have been accumulating and holding for the long term now account for over 20% of the total BTC supply. This level is notably above what has been observed in previous market cycles, indicating a significant shift in investor behavior.
The trend mirrors patterns seen during the 2022 bear market, when similar accumulation phases preceded eventual market recoveries. The firm's analysts note that market bottoms often form when profit-taking by shorter-term holders slows and conviction-driven buyers step in to absorb supply.
According to Glassnode, long-term holders are defined as addresses that have not moved coins for at least 155 days, a metric that helps distinguish between short-term traders and investors with a longer holding horizon. The current share of supply held by these long-term holders has surpassed 20%, a threshold that historically signals strong hands are accumulating.
This accumulation trend is generally interpreted as a bullish signal, reducing the amount of Bitcoin available for trading and suggesting that investors are less likely to sell in the short term. This behavior can reduce selling pressure and contribute to price appreciation over time.