Investors holding Bitcoin for extended periods have ceased cashing out their gains. Here's what this situation might imply.
Bitcoin's LTHs Slack on Selling, Signaling Possible Bull Run
Bitcoin's long-term crowd, those who've held the digital coin for 3 to 5 years, have cooled their selling jag since April, according to Glassnode, a go-to source for on-chain data, potentially signaling an uptick in price. That's the takeaway from a recent analysis by Glassnode.
Seasoned Hands Halt Their Sell-Off
Glassnode's data reveals that the 3 to 5-year BTC holders, who peaked in supply ratio back in November at 15.7%, took a break from unloading their bitcoins in April. With the latest selling spell, this ratio dropped significantly to 11.9%, which appears sky-high compared to the 3% low seen in earlier cycles.
Spending Reaches the Roof
Last week, the spending volume of the 1 to 5-year BTC owners reached an eye-popping $4.02 billion. The chunk of the change came from the 3 to 5-year investors with a whopping $2.16 billion transaction, second only to the incredible $6 billion peak in March 2024.
Bitesize: Americans Own More BTC Than Gold
Anticipating the Next Upturn?
The reduced selling fervor by long-term investors may be a bright spot for Bitcoin's value. However, Glassnode warns that this investor bunch still holds a colossal amount of BTC and may re-enter the selling arena as the price rises, intensifying the selling pressure during an upswing.
With the short-term selling fever diminished, we might be seeing the first steps of a new Bitcoin bull rush. Yet, the longevity of this trend depends on the behavior of long-term investors as the price climbs.
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Unpacking the Scene
As of early June 2025, the holders who've stacked up their BTC for three or five years exhibit a lessened selling pressure, as evidenced by:
- Toned-Down Sell-offs: A decrease in Binance inflows generally reflects a dampened selling spirit.[4]
- Steady Buying Spree: Long-term holders have been nabbing BTC, pushing the Long-term Holders Net Position Realized Cap north of $20 billion, a signal of their newfound confidence, which makes them less likely to dump their coins during market corrections.[4]
- Locked and Loaded Miner Reserves: Bitcoin miners have held their grounds with their reserves hovering around the 1.8 million BTC mark, maintaining a low selling pressure.[2]
The lessening selling pressure by long-term investors could engender:
- Rising Value and Stability: Lower supply entering the market due to reduced selling might bolster Bitcoin's worth while demand keeps growing, particularly among institutional investors.[5]
- Roaring Bull Vibes: The accumulation by long-term holders and the reduced selling pressure promote a bullish aura, enticing more investors and propping up prices.[4]
- Altered Market Dynamics: The shift towards institutional investment, led by public companies and funds, fosters the potential for price escalation as Bitcoin finds itself integrated into mainstream financial strategies.[5]
Nonetheless, take heed as market turbulence and global economic factors can still influence Bitcoin's price trends.[4]
- Enhanced Sustained Investment: The decrease in selling pressure from long-term Bitcoin investors could stimulate a lasting increase in its value, as the reduced supply might meet growing demand, particularly from institutional investors that favor the technology and finance aspects of block-chain-based investing.
- Blooming Markets: The dropped selling pressure from the 3-5 year Bitcoin holders, accompanied by increased buying, improved miner reserves, and institutional interest, may spark a bullish market, leading to higher prices through altered market dynamics.
