Long-Term Bitcoin Holders Now Control Over Half of the Circulating Supply!

• After a relatively stable week in the cryptocurrency market last week, Bitcoin failed to stay above $27,200 at the beginning of this week.
• Amidst market stability and an increasing adoption environment, an interesting trend has emerged in the world of Bitcoin – the commitment of long-term holders to keep their funds.
• On the other hand, short-term holders (STHs), defined as Bitcoin investors holding assets for less than 155 days, are experiencing a notable shift.

Long-term investors in Bitcoin are increasing their power by owning 13.44 million Bitcoins: How are short-term investors doing?

Long-Term Holders Strengthen Their Position in Bitcoin

After a relatively stable week in the cryptocurrency market last week, Bitcoin failed to stay above $27,200 at the beginning of this week. Factors contributing to this stability include the Federal Reserve’s policy meeting, where no decisions regarding new interest rate hikes were made.

Additionally, signs of global cryptocurrency adoption continue to emerge, highlighted by the Japanese banking giant Nomura launching a Bitcoin fund earlier this week, underscoring the ongoing growth in the sector.

Amidst market stability and an increasing adoption environment, an interesting trend has emerged in the world of Bitcoin – the commitment of long-term holders to keep their funds. Long-term holders (LTHs), often referred to as ‘Hodlers,’ are individuals who have held their Bitcoin positions for more than 155 days.

According to data from crypto analytics firm IntoTheBlock, these individuals have displayed a consistent commitment to the cryptocurrency. Specifically, this group currently holds an impressive 13.44 million Bitcoins, constituting a surprising 69% of the total circulating supply, which is currently 19.49 million BTC. The firm stated:

“They historically hold through bear markets and take profits in bull runs.”

Challenges for Short-Term Holders

On the other hand, short-term holders (STHs), defined as Bitcoin investors holding assets for less than 155 days, are undergoing a significant change. According to the latest ‘Week Onchain Newsletter’ from blockchain analytics firm Glassnode, STHs currently own a smaller portion of the available Bitcoin supply, a situation not seen in over a decade.

Glassnode’s data showed that 97.5% of short-term holders are currently facing unrealized losses, indicating a significant reduction in their influence. Interestingly, on-chain data also suggests that Bitcoin Hodlers are acquiring more Bitcoin than short-term holders.

In particular, with nearly all Short-Term Holders facing unrealized losses, sentiment has experienced a noticeable decline, increasing the likelihood of bulls gaining an upper hand. Conversely, when over 97.5% of short-term holder positions are in the green, these participants typically find themselves either at breakeven or with profitable positions to exit.

Therefore, these changes in Bitcoin ownership dynamics could play a key role in shaping the cryptocurrency’s price trend, independent of short-term market fluctuations.