On-chain data is revealing a shift in behavior among Bitcoin’s long-term holders, those who have held their coins for at least 155 days, which have recently reversed a sell-off trend and are now accumulating BTC at a rapid pace, absorbing nearly $8 billion worth of the cryptocurrency in recent weeks.

According to data shared by CryptoQuant analyst Axel Adler Jr. on the microblogging platform X (formerly known as Twitter), the supply of long-term holders increased by 126,000 BTC, as this holder cohort sold between $74,000 and $68,000.

From the $68K level, the supply of Long-Term Holders increased by 126K BTC, which is approximately $8B.Everything that LTH wanted to sell was sold at the $74K-68K level. pic.twitter.com/8JCciYOYv1

— Axel 💎🙌 Adler Jr (@AxelAdlerJr) July 25, 2024

Long-term holders are typically seen as the bedrock of Bitcoin’s price, with their conviction often counterbalancing the volatility exhibited by short-term investors.

Their growing accumulation comes at a time in which Matthew Sigel, Head of Digital Assets Research and Patrick Bush, Senior Investment Analyst (Digital Assets), VanEck’s digital assets research team outlined a scenario where Bitcoin could reach $2.9 million per coin by 2050. 

The valuation model predicts Bitcoin will become a crucial component of the International Monetary System, taking significant market share from the Principal Four currencies (USD, EUR, JPY, GBP).

VanEck anticipates a 20% market share decline for these currencies, with the Chinese renminbi, Bitcoin, emerging market currencies, and gold gaining that share. In this scenario, Bitcoin is expected to capture 10% of cross-border payments and 5% of domestic trade.

The model assumes that central banks will hold 2.5% of their assets in Bitcoin by 2050. Additionally, due to its store-of-value properties, 85% of Bitcoin’s supply is expected to be effectively removed from circulation by long-term investors.

On top of that Robert Kiyosaki, the highly successful author of the “Rich Dad Poor Dad” series of personal finance books, has recently suggested the flagship cryptocurrency Bitcoin will along with gold and silver, see its price rise “when Trump becomes President again.”

Featured image via Unsplash.