Bitcoin‘s price has shifted into positive territory as it recovers the $88,000 mark once again after undergoing a prolonged bearish performance. In spite of the significant volatile period that has persistently hindered upward momentum, bullish behavior has been spotted among Bitcoin long-term holders.
Long-Term Bitcoin Holders Stacking Up Their Holdings
The heightened volatility in the crypto market appears to have been a less troubling moment for many Bitcoin investors. During this period, more BTC has been acquired, cementing its position as a leading digital asset in the market.
World-leading on-chain data and financial platform, Glassnode has outlined an upholding bullish sentiment among investors in light of bearish pressure and market fluctuations. Specifically, long-term BTC holders have remained unwavering in their commitment as they steadily accumulate the asset.
This persistent accumulation by long-term holders implies that these strong hands have continued to absorb supply, signaling growing confidence in BTC’s long-term value and potential. Furthermore, this buying pressure from long-term investors comes at a time when short-term investors are cutting back interest, indicating a shift in BTC ownership to more resilient participants.
Glassnode highlighted that these long-term holders have been steadily purchasing BTC since February 23, reflecting a strong supply base. The trend was cited by the platform after navigating the Bitcoin Long/Short-Term Holder Supply Ratio, a key metric that determines investors’ behavior.
Presently, the 30-day accumulation rate is close to 6%, which is changing at an increasing rate. Since late February, the supply metric has shown a daily growth of about 7%, which suggests reducing sell-side pressure.
Meanwhile, the ratio of Bitcoin divided between long-term and short-term holders is currently at 3.53 level. Glassnode noted that the growth of this ratio has significantly accelerated since March 14, with an average daily increase of 0.42% (compounded) after reaching a bottom on February 6.
Should this rate be maintained, the ratio would return to its former peak of 5.53 in 108 days, on July 9, 2025. Given that LTHs are tightening their grip on supply, Bitcoin’s price dynamics could see reduced volatility, setting the stage for a future breakout.
Short-Term BTC Holders Are Struggling
While long-term holders display resilience, data from Glassnode shows that BTC’s short-term holders are under increasing pressure. This is evidenced by a notable surge in unrealized losses, causing many short-term coins to plummet toward the +2σ threshold. However, losses are still within historical bull market boundaries and are not as significant as the sell-off in May 2021.
Furthermore, Glassnode reported that Bitcoin had witnessed the largest sustained loss event of this cycle as the rolling 30-day realized loss for short-term holders has reached $7 billion. Nonetheless, this is still far less than previous capitulation scenarios such as the $19.8 billion and $20.7 billion losses in 2021 and 2022.
