A Unique Dynamic Is Settling in the Bitcoin Market

Long-term Bitcoin investors are firmly holding onto their positions despite the recent drop in prices to $76,600, their lowest level in four months. This persistent confidence, documented by new research, suggests a deep conviction in the market’s bullish recovery.

The drop in Bitcoin does not shake the confidence of holders

Long-term holders of bitcoin (LTH) have shown exceptional determination in the face of the recent market correction. On March 11, the price of bitcoin hit its lowest level in four months at $76,600.

In this situation, most investors would have succumbed to panic by massively selling their assets. However, Glassnode’s data reveals a contrary phenomenon: these experienced investors, who have held bitcoins for at least 155 days, have maintained their positions with a notable reduction in their selling pressure.

This atypical behavior is perfectly illustrated by the spent output profit ratio (SOPR) indicator, which measures the intensity of sales by long-term holders. This analytical tool clearly shows a significant slowdown in liquidations, while the supply of bitcoins held by these investors begins to stabilize after several months of gradual decline.

This resistance to selling potentially marks a turning point in market sentiment. According to Glassnode, “this suggests that there is a greater willingness to hold onto coins than to spend them within this cohort“, a behavior that sharply contrasts with the patterns typically observed at the peaks of bullish markets, characterized by intense profit-taking.

The emergence of new whales transforms market dynamics

Alongside this resilience of historical holders, another remarkable phenomenon is currently shaping the market: the aggressive accumulation of bitcoins by new “whales.” These addresses, holding a minimum of 1,000 BTC acquired on average in less than six months, testify to a new wave of massive institutional investments.

CryptoQuant’s data reveals the impressive scale of this movement. Since November 2024, these new major players have collectively acquired over a million bitcoins, becoming “one of the most influential actors in the market,” according to independent analyst Onchained.

Even more striking, the pace of acquisition has significantly intensified recently, with more than 200,000 BTC accumulated in a single month.

This massive accumulation by new wealthy investors, likely financial institutions or high-net-worth individuals, represents a fundamental shift in market structure. It suggests a deep confidence in the long-term potential of bitcoin, despite current volatility.

Nevertheless, perspectives among industry experts diverge. While many leaders view the recent decline as a “normal correction” preceding a new rally, some like Ki Young Ju, CEO of CryptoQuant, believe that the bullish cycle is over, predicting “a bearish or sideways price evolution for 6 to 12 months.”

The convergence between the resilience of historical holders and the massive arrival of new institutional investors creates a unique setup that could signal a distinctive market dynamic for the months to come. This exceptional situation invites a reconsideration of traditional models of analysis within the crypto market.