Bitcoin Long-Term Holders Accumulate as LTH Supply Nears Record Highs

Bitcoin’s long-term holder (LTH) supply is nearing record levels, signaling renewed confidence among experienced investors despite recent market weakness. Data shows that approximately 16.3 million BTC is now held by wallets that have not moved their coins for at least 155 days, a metric widely used to track long-term investor behavior.

The increase marks a significant rise from the 14.12 million BTC recorded around the time bitcoin surged above $126,000 in October. Over the past month alone, long-term holders accumulated nearly 200,000 BTC, indicating strong conviction in bitcoin’s long-term outlook.

The only period when LTH supply was higher occurred in January 2024, just before the launch of U.S. spot bitcoin ETFs. At that time, long-term holder supply peaked at roughly 16.4 million BTC. Following the ETF debut and bitcoin’s subsequent rally, nearly 2 million BTC was distributed as investors took profits during the market surge.

Historically, long-term holders tend to accumulate bitcoin during bearish or uncertain market conditions. These investors are often viewed as “smart money” because they increase exposure during periods of fear and reduce holdings during euphoric bull markets. Similar accumulation trends were observed during the 2015 and 2019 bear markets, when bitcoin prices experienced prolonged weakness.

Since the spot bitcoin ETF launch, LTH supply has mostly fluctuated between 14 million and 16 million BTC. However, the latest breakout above this range suggests a shift in market behavior. Analysts believe the current trend may indicate that long-term investors are once again accumulating BTC rather than selling, even as prices remain under pressure.

The rise in bitcoin long-term holder supply is being closely watched by traders and analysts, as it could signal growing confidence in the cryptocurrency market’s future recovery and long-term growth potential.