Bitcoin’s long-term holder (LTH) supply is approaching all-time highs. Currently, this group holds 16.3 million Bitcoins, defined as investors who have held Bitcoin for at least 155 days.
The supply of LTH has increased from 14.12 million BTC in October around the time Bitcoin broke through its all-time high of $126,000 to the current 16.3 million BTC. In the past month alone, LTH’s supply has increased by approximately 200,000 BTC.
The only time LTH supply was higher was in January 2024, when it reached 16.4 million BTC ahead of the launch of the U.S. Spot Bitcoin ETF, one of the most anticipated events in Bitcoin history. Over the next few months, as Bitcoin rose, the group distributed nearly 2 million Bitcoins.
Typically, during periods of price weakness or a full-blown bear market, long-term holders (often viewed as the smarter money) begin increasing exposure after withdrawing money during the previous bull market. During the bear markets of 2015 and 2019, LTH supply increased as investors accumulated holdings during periods of price weakness.
However, since the launch of the ETF in January 2024, LTH supply has fluctuated significantly between 14 million and 16 million BTC. Now, it appears to have broken out of a 2.5-year downtrend, suggesting that long-term holders are once again accumulating rather than allocating during Bitcoin price downturns.