Following a 1.13% decline over the previous day, Bitcoin [BTC] was changing hands at $64,215.20 at press time.
Nevertheless, the annual decline of the top cryptocurrency is shocking, as it has decreased by 46.98% over the last 12 months. On the other hand, Spot Bitcoin ETFs have seen $52.098 billion in inflows since their launch in January 2024.
Yet despite these influxes, the supply of Bitcoin’s long-term holders (LTHs) is still decreasing. For those unaware, LTH Balance shows the total amount of Bitcoin that these investors currently own, whereas LTH Supply Inflow shows how much Bitcoin is entering the long-term holder cohort.
Are LTH holders exhibiting buying or selling pressure?
According to CryptoQuant’s data, LTH Supply Inflow at 37.4K suggests that some Bitcoin is moving into long-term hands. In other words, investors are willing to hold Bitcoin for a longer time rather than selling it right away. However, the amount of Bitcoin departing the LTH cohort cannot be compensated for by these inflows.
Older coins leave the LTH classification when they are spent or sold, and the overall LTH Balance keeps declining if outflows outnumber inflows. Therefore, some long-term investors may still be taking profits or releasing their holdings into the market, as indicated by the falling LTH Balance.
While this does not necessarily imply that they have turned pessimistic, it does show that long-term holders continue to fuel selling pressure. Strong LTH supply inflows, however, indicate that accumulation has persisted, but the rate of accumulation has not yet been rapid enough to outpace the distribution from current holders.
Is BTC’s price near $65K a good sign?
Glassnode, meanwhile, asserted that Bitcoin has stabilized at $65,000, indicating that selling pressure has subsided and the market is starting to establish a more stable foundation.
The recovery is still hesitant, though, because on-chain activity and spot-market liquidity are still low. For instance, over the observed period, Spot Volume decreased from $4.0B to $3.4B.
This decline in participation points to a consolidation phase by indicating that there hasn’t been widespread investor involvement in recent price changes.
What to expect?
Meanwhile, the most recent data on Bitcoin accumulation clearly struck a difference between large and smaller holders.
On 9th August, addresses with more than 10,000 Bitcoin amassed 46,420, which was nearly twice the mid-March peak of 23,238 and the largest 60-day accumulation since the 15th of March. Meanwhile, addresses with between 0.1 and 1 BTC dispersed about 9,700 BTC, which is the opposite of the 11,600 BTC that was accumulated on the 5th of July.
This implies that while smaller holders are decreasing their exposure, whales are increasing theirs. All in all, the market structure for Bitcoin is still mixed, with long-term holders continuing to distribute the cryptocurrency while big whales are hoarding it.
Final Summary
- LTH Supply Inflow at 37.4K suggests that some Bitcoin is moving into long-term hands.
- Meanwhile, Bitcoin seems to stabilize at $65,000, indicating selling pressure has subsided.
