Bitcoin's Long-Term Holders Control Record Amount of BTC Supply, Boosting Scarcity

Bitcoin's Long-Term Holders Reach All-Time High

New data from on-chain analytics firm Glassnode reveals that Bitcoin's long-term holders (LTHs) now control more of the BTC supply than ever before. With over 76% of the available supply locked up in long-term storage, LTHs have a record market presence. This milestone marks a significant achievement in Bitcoin's history, according to Charles Edwards, founder of Capriole Investments.

Impact on Market Participants

The increased presence of long-term holders has led to a scarcity of coins available for other market participants. As the supply of Bitcoin decreases, the same group of people are bidding on fewer coins, which could have a significant impact on the market.

Bitcoin's Supply and Demand Economics

Charles Edwards explained that the reduced supply of Bitcoin, coupled with increased demand, should put upward pressure on the price. He emphasized that Bitcoin's supply has never been this constricted going into a halving. This trend trajectory suggests that the price of Bitcoin could continue to rise.

Short-Term Hodlers Provide Support

Short-term hodlers (STHs), or speculators, are also of interest to market observers. The realized price of the STH cohort has acted as support throughout the year. Recent data shows that the STH realized price sits just below $27,000, and breaking above this level could provide a bullish impetus for BTC/USD.

Bitcoin Holds Strong Support

Bitcoin has been holding strong support at $28,000 after reaching two-month highs. This stability further reinforces the positive sentiment in the market.

Note: This article does not provide investment advice. Readers should conduct their own research and exercise caution when making investment decisions.