Long-term investors in the Bitcoin market have pushed their total BTC holdings back toward record highs. This group, known for holding their assets for at least 155 days, now collectively holds 16.3 million BTC, underscoring their growing dominance in the market.
Supply of long-term holders hits new high
Since the start of the year, the total supply of BTC held by these long-term investors has shown a notable increase. Following Bitcoin’s historic price peak of $126,000 in October 2023, the supply controlled by this group has risen by about 2.2 million BTC. In just the past month alone, their holdings grew by an additional 200,000 BTC.
Before the launch of U.S. spot Bitcoin ETFs in January 2024, the amount held by long-term investors temporarily hit 16.4 million BTC. During the subsequent surge, however, these investors sold off nearly 2 million BTC, injecting significant liquidity into the market at that time.
Glossary: A Long-Term Holder (LTH) in Bitcoin is an investor who keeps their BTC for at least 155 days, focusing on long-term trends rather than short-term price swings. This group is often viewed as the “smart money” of the market.
Impact on market trends
Long-term holders often increase their share of the market during periods of weak prices or typical bear market conditions. In previous bear cycles, such as those in 2015 and 2019, the total supply held by long-term investors also grew steadily. Historically, such market weakness has fueled their demand to accumulate even more BTC.
Many analysts believe the recent shift away from selling and back to accumulation by long-term investors points toward Bitcoin reaching a potential price bottom.
Is the 2.5-year downtrend over?
Since the ETF launch in early 2024, long-term holders kept their aggregate BTC between 14 and 16 million. With their holdings now surpassing that range, it appears a 2.5-year declining supply trend has ended. Their recent accumulation signals a renewed focus on collecting coins at lower price levels.
| Month | LTH Supply (Million BTC) | Key Event |
|---|---|---|
| October 2023 | 14.12 | Bitcoin hits $126,000 record |
| January 2024 | 16.40 | Spot ETF launch |
| June 2024 | 16.30 | LTH accumulation rising |
Long-term investors return to accumulation
Current data show that despite Bitcoin’s price weakness, long-term investors are choosing to accumulate rather than sell. In previous cycles, this behavior has been viewed as a key signal for market bottoms.
As the holdings of long-term investors increase, the amount of liquid Bitcoin available on the market declines. This tightening supply could create upward pressure on prices in the future.
