Bitcoin has recently undergone a correction, hitting a four-month low at $76,600 on March 11. Despite this downturn, research indicates that long-term holders (LTHs) are maintaining their substantial Bitcoin holdings, hinting at a “unique market dynamic moving forward,” according to a report by Glassnode, released on March 18.
Long-Term Holders are defined as wallets that have held Bitcoin for at least 155 days. As selling pressure among this group begins to diminish, Bitcoin appears to be on the road to recovery. The Binary Spending Indicator, a key metric for assessing LTH activity, reveals a notable slowdown in spending behavior, which is accompanied by signs of a rebound in the LTH supply after months of decline. This suggests a shift in sentiment favoring holding rather than selling.
“This perhaps represents a shift in sentiment, with Long-Term Holder behavior moving away from sell-side distribution.”
Typically, bull market peaks are characterized by significant sell-side pressure and profit-taking from long-term holders, indicating a move towards bearish behavior. However, despite the recent price drop, this investor cohort continues to retain a large portion of their gains, suggesting that LTHs may still anticipate further upward movement in Bitcoin’s price later this year.
“This interesting observation may indicate a more unique market dynamic moving forward.”
In addition to LTH behavior, new Bitcoin whales—addresses holding at least 1,000 BTC and possessing an average acquisition age of under six months—are aggressively accumulating Bitcoin. According to CryptoQuant data, these whales have collectively acquired over 1 million BTC since November 2024, coming to dominate market influence.
This rapid accumulation reflects strong confidence in Bitcoin’s long-term potential. The current pace of accumulation has notably accelerated, with over 200,000 BTC purchased in just the past month. This influx suggests a shift in market dynamics, potentially signaling increased participation from institutional investors or high-net-worth individuals.
“This sustained inflow highlights a shift in market dynamics, suggesting increased institutional or high-net-worth participation.”
While some crypto executives assert that Bitcoin’s recent price decline is a standard market correction and that the conditions are ripe for a new narrative and upcoming cycle peak, dissenting opinions remain. For instance, CryptoQuant’s CEO, Ki Young Ju, has stated that the Bitcoin bull cycle is over, predicting continued bearish or sideways price action for the next 6-12 months.
This analysis underscores the complexities of the current Bitcoin landscape, with distinct behaviors emerging among long-term holders and new market entrants. As stakeholders navigate these changing dynamics, the wider implications for the cryptocurrency market remain to be seen.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
