FameEX Hot Topics | Bitcoin's Long-Term Holders Show Behavioral Shift, Unveiling New Market Dynamic

Bitcoin’s recent dip to a four-month low of $76,600 on March 11 marked a notable point in its ongoing correction phase. However, long-term holders (LTHs) have shown remarkable composure, continuing to retain their holdings rather than selling into weakness. According to Glassnode’s March 18 market report, activity among these holders — defined as wallets holding BTC for over 155 days — remains muted, with a clear drop in selling pressure. This resilience is being interpreted as a sign of a “unique market dynamic” taking shape.

Supporting this view, on-chain indicators show encouraging trends. The Binary Spending Indicator, which tracks when long-term holders start spending significant portions of their BTC, has slowed down. At the same time, the supply held by LTHs is beginning to rebound after months of gradual decline. This dual signal suggests a renewed preference to hold coins rather than distribute them — possibly indicating growing confidence among seasoned investors and a shift away from typical sell-side behavior.

Historically, bull market peaks are accompanied by heavy selling from long-term holders as they lock in profits. But that’s not what’s happening now. Despite recent price volatility, many LTHs are still sitting on significant unrealized gains, suggesting they expect more upside later in the year. Glassnode views this behavior as highly unusual for the current stage in the cycle — where profit-taking would normally intensify — and a potential sign that the market still has room to run.

Adding another layer to this emerging trend is the rise of new Bitcoin whales. Data from CryptoQuant shows that wallets holding 1,000 BTC or more — with coins acquired within the past six months — have rapidly accumulated over 1 million BTC since November 2024. Notably, over 200,000 BTC were added in just the past month. Analysts believe this signals growing institutional or high-net-worth interest and underlines strong conviction in Bitcoin’s long-term potential.

At the same time, several crypto analysts and executives have characterized Bitcoin’s recent drop as a routine correction. They argue that rather than indicating the end of a cycle, the market is merely in a holding pattern — waiting for a fresh narrative to propel it toward a new peak.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.