Bernstein: “Rising long-term holdings ease Bitcoin selling pressure…bolstering market stability”

Analysis suggests that as the share of long-term holders in the Bitcoin (BTC) market increases, downside pressure on prices is gradually easing. Inflows of institutional capital and corporate buying are also cited as factors that enhance market stability.

According to crypto (cryptocurrency) news outlet The Crypto Basic on the 17th, investment bank Bernstein said in a report that about 60% of Bitcoin’s supply has not moved for more than a year. This indicates that long-term holders’ dominance in the market is strengthening.

Bernstein assessed that this shift in the holding structure implies the market is transitioning from short-term trading to a long-term investment-driven structure. It explained that the more long-term holdings increase, the more limited the impact of abrupt sell-side shocks on prices could be.

Recent market moves were also viewed positively. Bitcoin rose about 6% last week, while Ethereum (ETH) gained about 14%, posting higher returns than gold and major stock indices. The analysis said the assets showed relative strength even amid macro uncertainty such as tensions in the Middle East.

Institutional inflows are also continuing. U.S. spot Bitcoin exchange-traded funds (ETFs) recorded net inflows for three consecutive weeks, bringing cumulative inflows to more than $2.1 billion. Bernstein said an increased allocation by large investors such as pension funds and asset managers is driving the trend.

Corporate Bitcoin buying is also cited as a key variable. According to Bernstein, Strategy bought an additional roughly 66,231 BTC this year, investing about $5.6 billion. The average purchase price is around $85,000.

The influence of large holders within the market is also expanding. Bitcoin held by ETFs, exchanges, and listed companies is estimated at more than about 3.75 million BTC, equivalent to roughly $201.0 billion.

Bernstein said, “As Bitcoin supply is being reshaped around long-term holders and institutions, the market structure is shifting to a more stable footing,” adding, “This trend could reduce short-term volatility and serve as a long-term price support factor.”