• Bitcoin long-term holders have increased accumulation since February 23, with a 30-day accumulation rate now approaching 6%.
  
• Between mid-February and early March, Bitcoin distribution slowed, and accumulation rose as long-term holders adjusted their market strategies.
  
• The accumulation trend continues to grow, averaging a 7% daily increase since late February, reinforcing market stability and investor confidence.
  

According to the latest report by Glassnode, Bitcoin long-term holders have been consistently building up their holdings since Feb 23. The altered trend in the supply in Bitcoin followed after the initial distribution phase in prior months, indicating the increasing influence on its supply chain.

Changing Holder Behavior

Between January and mid-February, long-term holders reduced their Bitcoin holdings, transferring a larger share to short-term holders. This distribution phase was evident in the declining LTH/STH supply ratio, reflecting an increase in short-term ownership. Despite these transfers, Bitcoin’s price remained relatively stable during this period.

From mid-February to early March, the data shows a shift as long-term holders slowed their distribution and began accumulating again. The LTH/STH supply ratio started to rise, indicating a reversal in behavior. The data suggests that long-term holders regained confidence, reducing their selling activity and preparing for a new phase of accumulation.

Strong Accumulation Phase

The purchase of Bitcoin by long-term investors has rapidly risen since March. Data from the LTH/STH supply ratio demonstrates that long-term investors continue increasing their purchase of available Bitcoin supply. The 30-day accumulation reaches about 6% as daily purchase levels rise to 7%.

This accumulation trend aligns with historical patterns where long-term holder confidence coincides with a strengthening Bitcoin market. By retaining more Bitcoin, these holders reduce the available circulating supply, which can contribute to price stability. The consistency in accumulation activity suggests a long-term perspective among investors.

Market Considerations

As long-term holders continue to accumulate, monitoring future changes in behavior will be essential. If accumulation remains strong, it could sustain reduced market supply, influencing overall liquidity conditions. However, if Bitcoin reaches new highs, some long-term holders may re-enter a distribution phase, which could alter the current trend.

Tracking the LTH/STH supply ratio provides insight into investor sentiment and market cycles. The ongoing accumulation phase underscores the role of long-term holders in shaping Bitcoin’s supply landscape. Understanding these behavioral shifts offers a clearer perspective on market movements and potential future trends.

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