The decline in Bitcoin's long-term holder supply raises concerns in the markets. Data from the analytical firm Glassnode suggests a potential trend reversal for Bitcoin.
Decline in Long-Term Holder Supply
Long-Term Holders (LTH) of Bitcoin increased their supply from 13.66 million in mid-March to 14.29 million. However, this figure has dipped again this month, raising concerns among market observers.
Softening Growth and Signs of Manipulation
Data indicates that LTH spending has increased to 0.43, which has historically been associated with local price tops. WhaleWire analyst Jacob King noted that Bitcoin may be forming a double top, potentially indicating the end of bull markets. He warned of possible market overheating due to manipulation and significant Tether inflows.
Institutional Purchases and ETF Market
Despite these warnings, Bitcoin has shown significant strength recently. Following a 32% correction earlier this year, it surged from $94,000 to $105,747. Key to this rebound were institutional purchases, with Strategy adding $1.34 billion worth of BTC to its portfolio. Additionally, interest in Bitcoin spot ETFs has surged, recording $1.94 billion in inflows over the past month.
Attention should be paid to current trends in the Bitcoin market as they may indicate upcoming changes. The decline in long-term holder volumes and the rise in institutional interests raise significant questions about Bitcoin's future.
