TLDR
Long-term Bitcoin holders are showing increased accumulation activity
Supply metrics indicate modest rise in long-term holder positions
Expert Axel Adler Jr. reports shift in holder behavior
Pattern emerges during market consolidation periods
Data suggests growing confidence among seasoned Bitcoin investors
Recent blockchain data indicates that long-term Bitcoin holders have begun accumulating additional positions, marking a shift in investor behavior during the current market phase.
On-chain analyst Axel Adler Jr. has identified an increase in the Long-Term Holder (LTH) supply metric, which tracks Bitcoin positions held for extended periods. This uptick suggests experienced investors are adding to their holdings despite recent market fluctuations.
The Long-Term Holder supply shows a slight increase following the peak sell-off at the 100K level compared to the Short-Term Holder supply.
This indicates that coins purchased 155 days ago by STH have transitioned into the LTH cohort. If this growth is confirmed over the next… pic.twitter.com/vJyRugLlSJ
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) January 7, 2025
The accumulation pattern typically emerges during consolidation periods, when prices stabilize within a specific range. These periods often precede larger market movements, though the direction remains uncertain.
Data from the Short-term Holder vs. Long-term Holder Supply metric reveals a gradual transition of coins from shorter-term traders to those with longer holding periods. This metric is considered a key indicator of market sentiment among established participants.
Long-term holders, defined as addresses holding Bitcoin for more than 155 days, have historically shown more resilient behavior during market volatility. Their accumulation patterns often reflect a deeper conviction in Bitcoin’s fundamental value proposition.
The current increase in long-term holder supply comes after several months of relatively flat activity. While the rise is described as modest, it represents a clear change in behavior from the previous quarter.
Technical analysis of the supply metrics shows that long-term holders now control a larger portion of the total Bitcoin supply compared to short-term traders. This ratio has been steadily increasing over recent weeks.
Market observers note that similar accumulation patterns have occurred during previous consolidation phases. However, past patterns do not guarantee future market movements or price action.
After the biggest dump of 2024, whales are accumulating Bitcoin again
“However, large players took advantage of the consolidation to open TWAP positions, patiently accumulating just below US$ 95K.” – By @caueconomy
Full post 👇https://t.co/yGOkuW0zo7 pic.twitter.com/9lqlHoWa4O
— CryptoQuant.com (@cryptoquant_com) January 8, 2025
The data suggests growing confidence among seasoned investors, who appear willing to increase their positions at current price levels. This behavior contrasts with shorter-term traders, who often display more reactive trading patterns.
On-chain metrics indicate that the accumulation is spread across multiple wallet addresses, suggesting broad-based participation rather than concentrated buying from a few large holders.
The supply concentration in long-term holder wallets has reached levels not seen since the previous quarter, though still below historical peaks from past market cycles.
Trading volumes during this accumulation period have remained relatively stable, indicating orderly market conditions without sudden spikes in buying or selling pressure.
Recent wallet analysis shows that the average holding period for Bitcoin positions has increased, supporting the broader trend of longer-term accumulation.
The number of addresses qualifying as long-term holders has grown by 2.3% over the past month, according to blockchain analytics platforms.
The most recent data points show continued accumulation as of last week, with long-term holder supply increasing by 0.4% over the seven-day period.
