Bitcoin's long-term holders have begun active accumulation since late February 2025, altering market dynamics and indicating possible changes ahead.
Rise of Long-Term Holder Interest
According to Glassnode, since February 23, 2025, Bitcoin's long-term holders have been steadily accumulating the asset, with the accumulation rate nearing 6%. This marks a significant shift from earlier trends, where accumulation rates were less pronounced. Interestingly, the accumulation rate has shown a consistent increase, averaging around 7% daily since late February. This surge in accumulation has come at a time when Bitcoin's price is showing steady growth, highlighting the confidence of long-term holders in the asset's potential for long-term value retention.
Long-Term vs. Short-Term Holders
A key indicator of this market shift is the growing supply ratio between Bitcoin held by long-term holders versus short-term holders. The ratio currently stands at 3.53, reflecting a market where long-term holders now control a significantly higher proportion of Bitcoin's supply. This ratio hit its lowest point on February 6, but since March 14, it has seen a sharp increase. If this trend continues, the ratio is expected to reach its previous peak of 5.53 by July 9, 2025.
Implications for Bitcoin Market
Bitcoin's recent price increase has likely played a part in fueling this change in holder dynamics. As more investors become confident in the asset's future, long-term holders are accumulating more, and short-term traders are gradually moving away from the market. This could be indicative of a broader trend where Bitcoin is shifting from being a speculative asset for traders to a more stable store of value for long-term investors. As the long-term vs. short-term holder ratio continues to grow, Bitcoin's market landscape is likely to shift, potentially impacting its price trajectory in the coming months.
If current trends hold, Bitcoin could enter a phase of relative stability, paving the way for a potential bull run in the latter half of 2025.
