The Bitcoin market is undergoing a significant transformation with a record increase in the supply held by long-term investors. According to recent data, between July 18 and August 14, 2024, approximately 284,740 BTC were added to the supply held by these investors, representing over $160 billion!
Bitcoin: Record growth in long-term holdings
Bitcoin is experiencing record growth in supply held by HODLers. This trend is closely linked to the growth of Bitcoin ETFs, which appear to be playing a crucial role in increasing the supply held in the long term. This increase suggests that investors are preferring to hold their assets rather than sell them, thus reinforcing market stability.
At the same time, the crypto market has experienced turbulence, with significant declines in the value of BTC and other digital assets. However, this growth in long-term held supply indicates resilience and continued confidence in Bitcoin’s long-term potential. Investors appear to be adopting a “HODLing” strategy, preferring to hold onto their assets despite market fluctuations. These HODLers now control approximately 75% of Bitcoin’s circulating supply.
The data also shows that illiquid entities, meaning network participants with little to no spending history, continue to accumulate BTC. The number of bitcoin held by these entities increased by over 90,000 BTC this month. This suggests a decrease in selling pressure and continued accumulation, which could further stabilize the market in the long term.
BTC investors are optimistic!
This dynamic contrasts with recent challenges in the crypto market, where tighter regulations and a decline in investor confidence have led to price declines. Despite these challenges, the growth in long-term supply shows that many investors remain optimistic about Bitcoin’s future.
The record growth in supply held by long-term investors is a positive sign for the Bitcoin market. It reflects renewed confidence and a long-term investment strategy, despite the current turbulence in the crypto market. This trend could play a key role in the stabilization and future growth of Bitcoin.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
Join the Read to Earn program
