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While retail investors are exiting the Bitcoin (BTC) market at an unprecedented pace, selling off their holdings, long-term holders are strengthening their dominance by accumulating a massive $14 billion worth of assets.
According to crypto media outlet NewsBTC on March 4 (local time), long-term investors who have held Bitcoin for more than 150 days purchased approximately 212,000 BTC (about $14 billion) over the past 30 days. Analyst Christian Encila noted that this trend coincides with an acceleration in retail investor capitulation across the digital asset market. Notably, 17 of the top 25 holders of spot Bitcoin ETFs expanded their positions during the recent downturn, signaling strong buying conviction among institutional investors.
Data from on-chain analytics platform CryptoQuant shows that long-term holders maintained selling pressure for most of 2025 but recently shifted to large-scale accumulation as Bitcoin corrected to the low $60,000 range. Prominent analyst J.A. Maartunn assessed that the long-term holder net position change indicator turning positive represents a decisive signal of deepening supply scarcity. Institutional investors are estimated to currently control about 12% of the total Bitcoin supply.
The pace of retail investor exit is the fastest since last October. After Bitcoin reached its all-time high of $126,200 and subsequently entered a downtrend, fearful retail investors offloaded their holdings en masse. However, market expert Zac Townsend stated that this stark divergence between “smart money” and retail investors has historically been a typical precursor to major price surges. As circulating supply is absorbed into the wallets of long-term holders, the available supply in the market is rapidly shrinking.
The aggressive accumulation by long-term holders has helped Bitcoin secure strong support around the $60,000 level, reinforcing downside resilience. Massive capital has absorbed the selling pressure from short-term investors, further solidifying the structural strength of the market. Experts believe that this supply-demand imbalance could act as a catalyst for explosive price growth if coupled with favorable macroeconomic changes.
The Bitcoin ecosystem is now being reshaped around long-term holders who view it as a store of value, moving away from short-term speculative forces. The expanding share of institutional ownership reflects the market’s maturation and stands as strong evidence supporting a long-term upward trajectory. Investors are closely watching for a new bullish cycle that could unfold once retail panic selling subsides and long-term accumulation is complete.
*Disclaimer: This article is for investment reference only and the publisher is not responsible for any investment losses arising from it. The content should be interpreted for informational purposes only.*