Bitcoin's Most Loyal Holders Continue Accumulation Despite Price Lull

Long-term holders of bitcoin Bitcoin BTC$94,100.44 have shown a continued accumulation of the tokens despite a recent billion-dollar shakeout, suggesting a bullish outlook in the longer term remains intact among traders regardless of the current market lull.

These long-term holders are also seemingly holding onto their spot positions, refraining from outright trading or using their bitcoin as collateral, analysts from crypto exchange Bitfinex said in a weekly note shared with CoinDesk.

Data cited by Bitfinex states that long-term holders continue to accumulate bitcoin, with 40% unmoved in more than three years, or an all-time high for that metric.

“Looking closely at long-term holder net position changes reveals a consistent accumulation trend since March 2023,” the analysts said. “This behavior indicates optimism and potential resilience against market volatility.”

However, while holders with very high holding timeframes of three years or more continue to accumulate Bitcoin, the one-year inactive supply metric suggests a more bearish sentiment.

“While holders who weathered both the bull market peak and bear market remain steadfast, "newer" long-term holders who acquired their positions during the bear market show more unease,” the analysts said. These holders are said to have exited their positions during a price drop from the $29,000 range low in July.

The note comes as crypto markets are enduring some of their longest low-volatility periods in recent years in the absence of favorable catalysts, a sustainable crypto ecosystem and a general lack of interest among retail investors for tokens.

Data even suggests that crypto futures and options traders are positioning for a bearish market in the coming months, with bitcoin prices expected to reach as low as $22,000 – or a more than 15% drop from current levels.