Bitcoin Long-Term Holder Share Hits Record, Signaling Bear Market May Be Near End

Bitcoin’s long-term holder share has reached a record high.

The Block reported on June 17 that Vetle Lunde, head of research at crypto research firm K33, wrote in a June 16 report that continued accumulation by long-term holders is making the market backdrop increasingly constructive.

K33 estimates that about 79% of Bitcoin’s circulating supply is now held by long-term investors. Existing holders have been reluctant to sell and are continuing to absorb supply. The firm said that is a sign the bear market is nearing an end, adding that the share held by long-term investors has repeatedly increased as Bitcoin approached major bear-market lows.

On-chain selling pressure is also easing. According to K33, about 218,500 Bitcoin that had remained dormant for more than two years moved again between January and early June this year. In the same period two years earlier, 1.18 million Bitcoin were reactivated. The contrast shows this year’s on-chain selling pressure differs sharply from two years ago, the firm said.

K33 also pointed to trends in Bitcoin exchange-traded funds. The firm said outflows from Bitcoin ETFs, a key driver of the recent weakness, have eased, helping stabilize market conditions. Trading volume has also fallen to the lowest level this year, a pattern that often appears in the later stages of a Bitcoin bear market.