Bitrabo Editorial
Recent on-chain data reveals a continuous decrease in the supply held by long-term Bitcoin holders, raising questions about the implications for the cryptocurrency.
Decrease in Bitcoin Long-Term Holder Supply Draws Attention
According to insights shared by CryptoQuant’s Axel Adler Jr on X, the supply held by long-term Bitcoin investors, defined as those holding onto their coins for over 155 days, has shown no signs of growth in the recent past.
Long-term holders (LTHs) represent a segment of the BTC market characterized by decreased likelihood of selling their holdings compared to short-term holders (STHs), who are more prone to making swift trades.
Despite the traditional resilience of LTHs, a recent trend indicates a decrease in their supply. Notably, this decline became more pronounced following the approval of spot exchange-traded funds (ETFs) by the US Securities and Exchange Commission back in January.
While LTHs typically hold onto their coins for significant periods, recent sell-offs suggest a shift possibly driven by substantial gains accrued during a price rally. This behavior is further reflected in the ongoing downtrend even amidst prevailing bearish price dynamics.
An observation worth noting is that the lack of growth in LTH supply could signify a broader market sentiment leaning towards pessimism. However, historical patterns suggest that such distribution among LTHs may not necessarily be an alarming signal in the context of previous market cycles.
Bitcoin Price Update
As of the latest update, Bitcoin is currently priced at approximately $61,200, marking a 4% decline over the past week.