Bitcoin, Moving to 'Hands That Never Sell'...Institutions and Whales Enter 'Lockdown Mode'

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Bitcoin (BTC) is seeing a rapid restructuring of its supply around long-term holders, signaling significant changes in market trends. Over the past month, approximately 303,000 BTC have been incorporated into the Long-Term Holder (LTH) group, marking the full-scale shift to 'strong hands.'

According to Bitcoinist, a cryptocurrency specialized media outlet, on April 24 (local time), on-chain data analysis revealed that long-term holders significantly increased their holdings over the past 30 days, rapidly absorbing Bitcoin supply.

Long-term holders typically refer to investors who have not moved their Bitcoin for more than five months and are considered a core pillar in the market that does not easily sell despite price fluctuations. An increase in their holdings directly leads to a decrease in circulating supply in the market, acting as a factor that enhances price stability.

What is noteworthy about this data is that beyond a simple increase in volume, a change in the supply and demand structure occurred simultaneously. During the same period, the volume held by Short-Term Holders (STH) decreased by approximately 290,000 BTC, clearly showing a trend where weak hands are exiting the market and strong hands are absorbing them.

This change is analyzed to have begun in earnest since the beginning of this year. Particularly, after the price correction in February, as the market entered a sideways phase, a 'HODLing' strategy focused on long-term holding was strengthened, leading to a continuous supply contraction.

The influence of institutional funds is also confirmed. Major institutional entities, such as spot ETFs and Strategy funds, are continuously absorbing certain amounts, reducing liquidity in the market, which is also cited as a factor accelerating supply reduction.

However, structural risks are simultaneously raised in terms of price upward momentum. Analysis suggests that the recent rebound is centered on the futures market rather than spot demand, indicating a possibility of increased volatility in the short term. It is pointed out that if spot demand is not supported, the upward trend may not sustain and could lead to a correction.

The market interprets this supply restructuring as a signal preparing for the next cycle, beyond a simple accumulation phase. This is because as Bitcoin supply becomes concentrated among long-term holders, the structure where circulating supply decreases is strengthened.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*