After the introduction of Spot ETFs, we’ve seen long-term holders starting to gradually shift their positions to new owners through profit realization. It’s important to note that many of these new owners might be former Grayscale investors transitioning to Spot ETFs for lower fees, so we’re not talking about completely new market participants. However, the dynamic here is crucial: these new holders are now transitioning into long-term investors, as they have crossed the 155-day threshold on-chain.

While their short-term price expectations may not have been met, overcoming the first six months is psychologically significant. These investors are now categorized as long-term holders. As the chart shows, short-term supply is declining while long-term supply is increasing.

Looking back at previous years, this process has been marked by much sharper price movements. What’s different now is the impact of Spot ETFs and the integration of traditional financial instruments, which seems to be smoothing Bitcoin’s volatility. This trend suggests that Bitcoin is gradually leaving its youthful volatility behind and transitioning into a more mature asset.

In the future, we could be witnessing a Bitcoin that has become more integrated with the global economy, with reduced price swings and greater stability which could bring more institutional demand.

Written by Kripto Mevsimi