Bitcoin long-term holder behavior shift signals 'unique market dynamic' — Research

Bitcoin’s corrective phase set a four-month low at $76,600 on March 11. Despite this decline, long-term holders have continued to hold large amounts of BTC, suggesting a “unique market dynamic moving forward,” new research says.

“Long-Term Holder activity remains largely subdued, with a notable decline in their sell-side pressure,” Glassnode said in a March 18 markets report.

Long-term holders show signs of bullishness

Bitcoin’s recovery comes as selling pressure among Long-Term Holders (LTHs) — wallets that have held Bitcoin for at least 155 days — begins to wane. 

The Binary Spending Indicator, a metric used to determine when LTHs are spending a significant proportion of their holdings in a sustained manner, shows a slowdown (see chart below) while the LTH supply is also beginning to rebound after several months of decline.

“This suggests that there is a greater willingness to hold than to spend coins among this cohort,” Glassnode noted, adding:

“This perhaps represents a shift in sentiment, with Long-Term Holder behavior moving away from sell-side distribution."

Bitcoin: LTH spending binary indicator. Source: Glassnode

Bull market tops are often marked by intense sell-side pressure and strong profit-taking among LTHs, which signals a complete shift to bearish behavior. 

However, despite Bitcoin's drawdown in recent weeks, this investor cohort continues to hold a large portion of their profits, especially for this later stage of the cycle, Glassnode said.

This could suggest that long-term holders may still be expecting more BTC price upside later in the year.

“This interesting observation may indicate a more unique market dynamic moving forward.”

Bitcoin: Cumulative LTH realized profit. Source: Glassnode

New Bitcoin whale accumulation reshapes markets

New Bitcoin whales, addresses holding at least 1,000 BTC, where each coin has an average acquisition age of less than six months, are aggressively accumulating, according to CryptoQuant data.

This signals strong conviction in Bitcoin’s long-term outlook among the new large investors.

These wallets have collectively acquired over 1 million BTC since November 2024, “positioning themselves as one of the most influential market participants,” said CryptoQuant independent analyst Onchained in a March 7 analysis.

The chart below shows that their pace has accelerated notably in recent weeks, “accumulating more than 200,000 BTC just this month.”

“This sustained inflow highlights a shift in market dynamics, suggesting increased institutional or high-net-worth participation. ”

Bitcoin supply held by new whales. Source: CryptoQuant

Meanwhile, several crypto executives have told Cointelegraph that Bitcoin’s recent price drop was a “normal correction,” with the market just waiting for a new narrative and a cycle top yet to come.

But not everyone agrees. For instance, CryptoQuant founder and CEO Ki Young Ju said that the Bitcoin bull cycle is over. He added:

“Expecting 6-12 months of bearish or sideways price action.”

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.