FameEX Hot Topics | Shift in Bitcoin Long-Term Holder Behavior Reveals ‘Unique Market Dynamic’

Bitcoin recently entered a corrective phase, hitting a four-month low of $76,600 on March 11. Despite this decline, long-term holders (LTHs) have shown little interest in selling, signaling what researchers describe as a “unique market dynamic.” According to Glassnode’s March 18 market report, the activity among LTHs—wallets that have held Bitcoin for at least 155 days—remains largely quiet, with a significant drop in sell-side pressure.

This decline in selling activity aligns with a notable trend in key on-chain metrics. The Binary Spending Indicator, which gauges when LTHs begin offloading significant amounts of BTC over time, is slowing. At the same time, the overall LTH supply is beginning to recover after a prolonged period of decline. Glassnode interprets this behavior as a growing preference to hold rather than sell, suggesting a shift in sentiment among experienced Bitcoin investors.

Traditionally, market cycle tops are marked by heavy profit-taking and distribution by LTHs, often signaling a broader bearish turn. However, this cycle appears to be different. Even amid recent price corrections, LTHs continue to hold a large share of their unrealized gains. Glassnode points out that this is especially notable given the later stage of the current cycle, implying that many long-term investors may still be anticipating further upside in Bitcoin’s price before making any major moves.

Adding to this optimistic outlook is the emergence of new Bitcoin whales. According to CryptoQuant, addresses holding at least 1,000 BTC—acquired within the past six months—have been accumulating aggressively. Since November 2024, these wallets have acquired over 1 million BTC, including more than 200,000 BTC in the past month alone. CryptoQuant analysts suggest this surge in buying reflects strong conviction among institutional and high-net-worth investors, marking them as influential players in the current market cycle.

Meanwhile, several crypto industry leaders have described Bitcoin’s recent price dip as a “normal correction” rather than the start of a downturn. They argue the market is merely awaiting a new narrative to drive momentum, with the cycle top still ahead. This reinforces the view that current trends reflect consolidation rather than capitulation.

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