FameEX Hot Topics | Bitcoin Price Surge Nets $26B Windfall for Long-Term Holders

Bitcoin’s long-term holders (LTHs) saw a notable increase in wealth throughout April as BTC prices rose sharply from $74,450 to $94,900. According to on-chain data from CryptoQuant, the realized market capitalization for LTHs climbed from $345 billion to $371 billion between April 1 and April 23. This $26 billion increase underscores how holding through market volatility can yield substantial gains, particularly following the over 30% correction that took place earlier in the year.

This type of rebound aligns with historical Bitcoin market cycles. After hitting new all-time highs, the cryptocurrency has often undergone significant drawdowns, as seen in 2013, 2017, and 2021. These corrections tend to flush out short-term speculators while long-term holders accumulate more, setting the stage for renewed bullish trends. The latest price surge suggests that LTHs who stayed committed through the dip are now being rewarded, reinforcing their long-term conviction.

Recent macroeconomic conditions have also strengthened Bitcoin’s appeal among these holders. As U.S. equities declined amid heightened trade tensions, Bitcoin demonstrated increasing independence from traditional financial markets. Gold prices spiking to $3,500 reflected a broader search for safe-haven assets. This environment further legitimized Bitcoin’s role as a store of value. In contrast, many short-term holders (STHs) sold at a loss during April’s downturn, highlighting their susceptibility to market swings. These behaviors have repeated throughout 2024, with STHs often transferring BTC to LTHs during corrections.

On-chain metrics support a bullish outlook. The total Bitcoin supply in profit has risen to 16.7 million BTC, surpassing the historical “threshold of optimism.” Similar scenarios in 2016, 2020, and 2024 preceded large upward price movements, suggesting the market could be poised for another rally if these conditions persist.

Still, analysts urge caution in the near term. Michael van de Poppe, founder of MNCapital, expects a short-term cooldown following Bitcoin’s sharp rise. BTC may consolidate between $94,900 and $88,750, with key support at $90,500. If this range fails to hold, prices could retrace to the $84,000–$86,300 zone—an area where Bitcoin previously consolidated before its breakout.

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