Bitcoin Long-Term Holders: A Shift in Distribution Patterns
In a recent analysis, the on-chain analytics company Glassnode has unveiled significant changes in the behavior of Bitcoin’s long-term holders. For several months, these holders have been actively selling, but recent data suggests a deceleration in their distribution activities.
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Understanding the Behavior of Long-Term Bitcoin Holders
In its comprehensive weekly analysis, Glassnode has highlighted evolving trends among Bitcoin’s long-term holders (LTHs). These LTHs are defined as investors who have retained their Bitcoin for over 155 days. Statistically, the longer investors hold onto their Bitcoin, the less likely they are to sell, earning them the moniker of the “diamond hands” within the crypto community.
Significance of Long-Term Holder Activity
The behavior of these long-term holders is crucial for predicting market trends. Any substantial change could impact the broader cryptocurrency market, given their significant influence. Monitoring LTH behavior involves several methods, one of which is the Net Position Change metric. This metric evaluates the monthly net change in Bitcoin supply held by the entire LTH cohort.
Recent Trends in LTH Net Position Change
According to Glassnode’s latest data, the Net Position Change for Bitcoin LTHs has been negative in recent months, indicating a net outflow. In the early months of 2025, the metric was positive, but it turned negative starting July, signifying increased selling activity. It’s important to note that while sales are immediately reflected in the data, new acquisitions only appear after the coins have been held for over 155 days.
Current Market Dynamics and Future Implications
As of October, the Net Position Change has stabilized to a neutral state, implying that the rate of selling is now being balanced by the maturing of new coins into the LTH category. This change suggests a reduction in the selling pressure from LTHs, potentially paving the way for market influences such as Exchange-Traded Funds (ETFs) to play a more pivotal role.
The Role of ETFs and Market Stability
Recent data has also shown a shift in the net flow of US Bitcoin spot ETFs. After experiencing outflows in late September, these ETFs have returned to positive net flows. This resurgence in demand, coupled with the reduced selling from LTHs, could provide a stabilizing effect on the market, setting the stage for potential price resilience and growth.
Bitcoin Price Trends
Currently, Bitcoin is valued at approximately $119,700, marking an impressive 8% increase over the past week. Observing the price trajectory over recent days can provide insights into future movements.
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