Long-Term Bitcoin Holders Reach Record Levels Amid Bear Market

Fidelity Digital Assets has released data showing that the supply of Bitcoin held by long-term investors has reached an all-time high of nearly 15 million coins. This cohort is considered a key indicator of investor conviction, and Fidelity's research analyst Zack Wainwright notes that this group tends to hold onto their exposure even when prices are under pressure.

The data shows that 40% of the long-term holders now sit at an unrealized loss, but most have chosen to keep their exposure anyway. Historically, this supply has expanded during bear markets and contracted during bull markets.

Fidelity's analysis suggests that the current market is maturing, with a shallower decline in prices compared to previous bear markets. As a result, Wainwright predicts that Bitcoin may trade near $44,000 soon.

The bear-market framework remains intact, but Fidelity will not confirm whether this marks the final stage of the bear market. August is seen as a critical month for testing investor conviction.