Long-Term Bitcoin Holders Are Finished Dumping Their Coins: Analyst
Bitcoin HODLers appear to have finished taking profits from their long-dormant coins after an early-year rally pushed them far into the green, according to a popular crypto market analyst.
In a Monday X post, TXMCtrades said that the market has “likely absorbed the majority of the Long-Term Holder supply we will see activated in this run.”
Behavior Of Long Term Bitcoin Holders
“As in every cycle, old supply came to life at the highs to pay itself for years of enduring risk,” he explained.
The total coin supply held by long-term holders – coins that haven’t moved for 155 days or more – steadily climbed between July 2022 and January 2024.
This pattern changed course after the launch of U.S. Bitcoin spot ETFs, which invited billions of dollars into the market, driving up the asset’s price and incentivizing HODLers to realize their gains.
Since then, long-term holders have sold 1.2 million BTC, of which roughly one-third of sales came from the fast-declining Grayscale Bitcoin Trust (GBTC). The Bitcoin ETF is mostly comprised of long-term BTC holders with a lower cost base, unlike fresher competitors whose earliest buyers arrived this January.
“That we know GBTC was 1/3rd of it doesn’t alter the cyclical footprint,” TXMC explained. “The hodler cohort is typically in accumulation at all times except parabolic bull runs.”
