FameEX Hot Topics | Bitcoin long-term holders get $26B boost as BTC price recovers

Bitcoin’s long-term holders (LTHs) enjoyed a significant wealth increase in April as BTC’s price climbed from $74,450 to $94,900. According to CryptoQuant, the realized market capitalization for LTHs surged from $345 billion to $371 billion between April 1 and April 23—representing a $26 billion gain. This uptick in LTH realized cap highlights how long-term conviction is paying off, especially after enduring the sharp 30% correction earlier this year.

The recent price recovery follows a typical Bitcoin cycle pattern, where major drawdowns occur after new all-time highs. Historical data from 2013, 2017, and 2021 reveals that such pullbacks often precede renewed upward momentum. Many short-term investors exit during these corrections, while long-term holders continue to accumulate—positioning themselves for the next leg of the bull market. This resilience during volatility has become a defining feature of LTH behavior.

Market dynamics further validated LTH confidence during the recent downturn. As U.S. equities struggled amid ongoing trade tensions, Bitcoin's decoupling from traditional markets became more apparent. Gold surged to $3,500 as investors sought safer assets, enhancing Bitcoin’s appeal as a store of value. While short-term holders (STHs) briefly returned to profit this week, many had sold at a loss during the April slump—mirroring a trend where STHs offload positions to LTHs during periods of market uncertainty.

On-chain indicators remain bullish, particularly the supply-in-profit metric. Currently, 16.7 million BTC are held in profit across the network. This level surpasses the so-called “threshold of optimism,” a range that historically precedes major price rallies. Past cycles in 2016, 2020, and 2024 showed that when BTC sustains this level, it often triggers substantial upward momentum within months.

Despite the rally to $94,900, analysts are cautious of a potential cooldown. Michael van de Poppe of MNCapital noted that a minor correction would be “fairly normal” after such a move. Technically, Bitcoin may consolidate between $94,900 and $88,750, with key support near $90,500. A break below this zone could challenge the bullish structure on lower time frames, potentially driving prices back to the $84,000–$86,300 range—where BTC previously gathered strength for its recent 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.