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▲ Bitcoin (BTC)/AI Generated Image
While Bitcoin (Bitcoin, BTC) struggles to find direction below $80,000, long-term holders are increasing their control over the circulating supply. Even with weakened short-term price momentum, the proportion held by long-term investors has exceeded 81% of the total supply, highlighting the potential for reduced selling pressure.
Bitcoinist reported on May 22 (local time) that long-term holder activity has become a major market focus while Bitcoin remains below $80,000 after a broader market correction. According to the article, On-Chain Mind stated that long-term holders, through continued accumulation, now hold over 81% of the total Bitcoin supply.
The increasing proportion of long-term holders is interpreted as a sign of strengthening conviction among experienced investors, even amidst short-term instability and limited price movements. Bitcoinist reported that if long-term holders continue to accumulate Bitcoin during sideways periods when weaker investors leave the market, it can reduce selling pressure and create a favorable environment for the next uptrend.
On-Chain Mind analyzed that the movement of Bitcoin held by older investors has become quiet, the revived supply has also sharply decreased, and speculative capital is already close to the bottom of the bear market. With these factors appearing simultaneously, the current Bitcoin market is described as being closer to a phase of declining sellers rather than a new collapse.
However, the flow of institutional investors diverged from that of long-term holders. Darkfost, a verified contributor to CryptoQuant, analyzed that institutional selling pressure has increased as the Coinbase Premium Index delved deeper into negative territory. This indicator appears negative when the Bitcoin price on Coinbase Advanced is lower than on Binance, suggesting that institutional and professional investors using Coinbase Advanced are selling more aggressively than Binance investors.
Darkfost evaluated institutional investor behavior using a modified indicator for ultra-short-term analysis based on a 1-hour timeframe and a volume-weighted approach. He explained that institutional investors appear to be shifting to hedging strategies, awaiting further clarity amidst the current macroeconomic uncertainties.
Bitcoinist reported that institutional investor flows could quickly change if the situation surrounding the Strait of Hormuz eases. In the current market, where long-term holder accumulation and institutional selling pressure are occurring simultaneously, changes in behavior by different investor types have emerged as a key variable determining Bitcoin's direction, more so than short-term prices.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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