Bitcoin holder supply reaches $10B for the first time: Effects on BTC?

• Bitcoin holder buys hit $10 billion for the first time.
• Bitcoin large holders supply hit 262,000 BTC over the past 30 days.

Bitcoin [BTC], the largest cryptocurrency by market cap, has recently experienced a sharp decline in its prices. At press time, the king coin was trading at $58679. This marked a 6.69% decline over the past 24 hours.

Prior to this decline, BTC was in upward movement, reaching a high of $64,404 in the last week. However, the sharp decline on daily charts has outweighed all the weekly gains to record a 1.71% drop on weekly charts.

This sudden decline raises questions about panic selling and the role of long-term holders in ensuring Bitcoin’s stability.

Long-term Bitcoin holder buys hit $10 billion

According to CryptoQuant analyst Amr Taha, long-term holders are less likely to sell and to purchase and hold during market downturns.

In his analysis, Amr Taha posited that long-term holders have spent $10 billion to purchase the crypto. Also, these buyers have avoided selling as the market was currently in a downturn.

In a post, the analyst shared,

“For the first time ever, the realized capitalization of long-term holders has exceeded $10 billion.”

Source: CryptoQuant

Based on this observation, holders who passed the 155-day mark continued to hold their crypto. Additionally, as witnessed over the past 30 days, institutions have increased their purchases.

Big BTC investors such as Marathon, Blackrock, Galaxy Digital, Metaplanet among others have increased their holdings over the past 30 days.

These institutions are large holders and tend to accumulate their assets for a prolonged period.

Source: IntoTheBlock

This phenomenon means large holders have long accumulation phases. As data from IntoTheblock shows, large holders take at least five months to three years to sell their assets, while small holders tend to sell their holdings.

Long-term holders supply increased by 262,00 BTC

While long-term holders are less likely to sell, their supply has experienced exponential growth. As shared by Cryptoquant, long-term holders control over 75% of the total BTC supply.

Through their X (formerly Twitter) page, they shared the analysis, noting that,

“In the past 30 days, Long Term Holders supply increased by 262,000 $BTC.They now control 14.82 million Bitcoin, which accounts for 75% of the total supply.”

Source: CryptoQuant

The last 30 days have witnessed high BTC volatility hitting a low of $49577. These price fluctuations explained the increased accumulation by long-term holders.

These holders tend to purchase more assets during market downturns and reintroduce them to the market during a prolonged bull market. The strategy ensures they buy cheaply and sell later at high returns.

Thus, for long-term holders, low BTC prices are a buying opportunity to accumulate.

Source: IntoTheBlock

Therefore, although Bitcoin is experiencing a downturn, this presented a buying opportunity for long-term holders. Increased buying activities result in buying pressure, which in turn drives prices up.

Read Bitcoin’s [BTC] Price Prediction 2024–2025

As such, when the market crashed earlier this month, large holders inflow increased between the 5th and the 9th of August, driving prices back to $60,662 resistance level.

Thus, such a cycle will likely repeat itself to drive prices above $60k.