The supply of Bitcoin held by long-term holders (LTH) is nearing peak levels. This group currently possesses 16.3 million BTC, characterized as investors who have maintained their holdings for a minimum of 155 days.
Since Bitcoin reached its all-time high of over $126,000 in October, the LTH supply has climbed from 14.12 million BTC to its present level of 16.3 million BTC. Remarkably, in just the past month, an increase of around 200,000 BTC has been noted within this category.
The only previous instance when the LTH supply surpassed current levels was in January 2024, reaching 16.4 million BTC before the much-anticipated U.S. spot Bitcoin ETF launch, an event widely regarded as pivotal in Bitcoin’s timeline. In the subsequent months, nearly 2 million BTC was sold by this group as prices surged.
Traditionally, during times of price decline or within bear market conditions, long-term holders—often considered the more strategic investors—tend to increase their exposure after recently selling during preceding bull markets. Historical trends from both the 2015 and 2019 bear markets show an uptick in LTH supply as investors seized opportunities amid price declines.
Nevertheless, since the ETF launch in January 2024, the LTH supply has mostly fluctuated between 14 million and 16 million BTC. Recently, it seems to have emerged from a 2.5-year downtrend, indicating that long-term holders are leaning towards accumulation rather than distribution despite Bitcoin’s low price points.