The balance of long-term Bitcoin holders reached 12.45 million BTC, the lowest level since July 2022. The decline is 9.8% for the current cycle, which is less than in previous cycles: 15% in 2021 and 26% in 2017. This indicates a relatively stable position of investors despite global market changes.
While it is common for long-term holders to shrink their balance sheets as market cycles progress, the current pace suggests sentiment remains positive. Analysts say a sharp turnaround could come if interest among large investors continues to wane.
It is noted that against the backdrop of the current market recovery, 80% of Litecoin holders were in the black. This is the highest figure since November 2021, when the token was trading at $220. Such an increase in interest in the digital currency may be due to the recent breakout of key resistance levels.
The rise in Litecoin prices highlights LTC's popularity among retail investors, especially when other assets are showing mixed dynamics. For Bitcoin holders, the situation is not yet critical, but requires careful monitoring in the coming weeks.
Long-term investors' BTC balances have traditionally been squeezed at the top of market cycles. In 2017 and 2021, this led to significant price corrections. However, the current cycle has seen a smaller decline, which could be a positive sign for the future.
The data suggests that the market remains in a state of relative equilibrium. However, investors should consider historical trends and be prepared for potential swings, especially if long-term holders continue to sell their holdings. $BTC
