Bitcoin Long-Term Holder Supply Hits Record 15.8 Million, CryptoQuant Says as New Buyer Demand Slows

Bitcoin supply held by long-term investors has reached a record high, but that does not necessarily point to strong accumulation, according to a market analysis. Instead, weakening demand from new buyers appears to be pushing existing holdings into the long-term holder category.

CoinDesk reported on May 29 that CryptoQuant, in a recent report, said Bitcoin long-term holder supply had risen to an all-time high of 15.8 million BTC.

An increase in long-term holder supply is typically viewed as a bullish signal because it suggests investors are accumulating Bitcoin and pulling it out of the circulating market. CryptoQuant said this time the metric reflects slowing market turnover more than investor conviction.

The report said short-term holder supply has dropped by about 2.2 million BTC since December last year. Of that amount, about 900,000 BTC was estimated to have been reclassified as long-term holder supply after Coinbase-held balances crossed the 155-day threshold.

When new buyers decline, coins held by existing investors remain inactive for longer and move into the long-term holder category, CryptoQuant wrote. It added that the increase in long-term holder supply should be read as a sign of slowing market participation.

Demand from large investors is also weakening. Balances in whale wallets holding 1,000 to 10,000 BTC have fallen from a year earlier. Annual growth in so-called dolphin wallets holding 100 to 1,000 BTC has also slowed sharply since peaking in October last year. That wallet group is considered the segment most closely tied to spot exchange-traded fund inflows and corporate treasury buying.

Other indicators show a similar pattern. Glassnode said in a recent report that spot demand and ETF inflows have slowed, and that capital inflows are not strong enough for Bitcoin to sustainably break above a key cost basis near $78,000.

Market participants are interpreting the current backdrop as closer to a buying vacuum than a broad selloff. Bitcoin is holding above $70,000, but fresh demand strong enough to drive prices higher remains limited.