 ▲ Bitcoin (BTC) |
Long-term holders of Bitcoin (BTC) are maintaining record-level holdings despite price corrections, providing strong downside support for the market.
According to cryptocurrency-focused media outlet CryptoPotato on March 13 (local time), the total supply held by Long-Term Holders (LTH)—those who have held Bitcoin for more than 155 days—recently reached a record high and continues to remain elevated. On-chain data analysis shows that long-term holders have chosen not to sell large amounts of their holdings even במהלך corrective phases following past price surges. The Bitcoin they hold accounts for a significant portion of the circulating supply, contributing to a substantial reduction in effective market liquidity.
Data from on-chain analytics platform Glassnode indicates that even after Bitcoin reached a peak near $73,000, the proportion of holdings by long-term investors did not decline significantly. Typically, rising prices trigger stronger profit-taking activity, but in this cycle, long-term investors have demonstrated stronger conviction than ever before. While short-term holders have been releasing supply into the market, long-term holders have been absorbing it and maintaining their portfolios.
Market experts analyze that the accumulation behavior of long-term holders is maximizing Bitcoin’s scarcity. Santiment reported that Bitcoin supply continues to move off exchanges, reflecting a growing preference among investors to store assets for the long term. Notably, despite volatility in the futures market where open interest remains high, the limited departure of long-term spot holders suggests that the market’s structural foundation has strengthened.
The supply shortage is likely to intensify supply-demand imbalances following the Bitcoin halving. As institutional investment accelerates, a large portion of the circulating supply remains locked in the hands of long-term holders, creating conditions for explosive volatility during price increases. Financial institutions including JPMorgan project that as Bitcoin’s role as a store of value strengthens, the proportion of long-term holdings will serve as a key indicator defending against downside pressure.
The Bitcoin market is entering a new phase as the steadfast holding strategy of long-term investors converges with institutional capital inflows. Short-term price corrections may facilitate the transfer of holdings among investors, but the core of overall supply remains concentrated among long-term holders. Market participants are closely monitoring changes in long-term holder wallet addresses and exchange inflows in real time to assess whether sufficient momentum has accumulated for the next rally.
Disclaimer: This article is for investment reference only, and no responsibility is assumed for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.