Test in progress 3

An analysis suggests that Bitcoin (BTC) long-term holders have shifted into a net-buying phase, easing the sell-side overhang that had been a key source of downside pressure on the market throughout the year.

According to CoinDesk, a digital-asset (cryptocurrency) media outlet, long-term holders (Long-term Holder·LTH) who have held Bitcoin for at least 155 days were net buyers of about 33,000 Bitcoin (BTC) over the past 30 days. It is the first time since July that long-term holders have shown net accumulation.

According to data from on-chain analytics firm Checkonchain, the shift to net buying is largely driven by investors who bought Bitcoin over the past six months being reclassified as long-term holders. As the inflow of these new long-term holders has outpaced the distribution volumes of existing long-term holders, a net-increase structure has formed.

This year, selling by long-term holders has been cited as one of the biggest sources of selling pressure in the Bitcoin market. In fact, during the recent correction, long-term holders sold more than 1 million Bitcoin, marking the largest selling pressure from this cohort since 2019.

This selling corresponds to the third long-term-holder distribution phase in the current cycle. The first was in March 2024, when Bitcoin reached $73,000 and about 700,000 coins were sold. The second was in November of the same year, when Bitcoin hit $100,000, releasing more than 750,000 Bitcoin into the market.