KeyTakeaways:
- LTH distribution slows, signaling growing confidence in Bitcoin’s long-term prospects.
- LTH dominance rises, indicating accumulation despite market fluctuations.
- LTHs remain in profit, suggesting sustained optimism for future Bitcoin price movement.
Bitcoin’s long-term holders (LTHs) have shown signs of reduced distribution. Recent data from Glassnode shows that, even with prices approximately 12% below their all-time high, LTHs continue to distribute Bitcoin at a slower pace. The data suggests that the rate of LTH distribution has peaked, reaching levels comparable to previous market cycles.
The latest chart, “BTC: Long/Short-Term Holder Supply Ratio,” highlights Bitcoin’s price movement alongside the long-term holder (LTH) and short-term holder (STH) supply ratio. The chart tracks Bitcoin’s price fluctuations from 2014 to 2025, revealing the ongoing shift between LTH and STH dynamics. As the LTH supply ratio increases, more long-term holders are accumulating Bitcoin, signaling growing confidence in the market.
Moreover, the chart illustrates the 30-day moving average (MA) changes in LTH and STH accumulation. The yellow line shows the percentage change in LTH accumulation, while the orange line tracks STH accumulation. An indicator from the data is the rise in LTH dominance in the supply ratio, suggesting that long-term holders are still accumulating Bitcoin despite some signs of distribution.
LTH in Profit Amidst Distribution Trends
Despite the distribution by LTHs, Bitcoin’s long-term holders are still in profit. Data reveals that the percentage of LTH supply in loss remains at 0%, indicating that nearly all Bitcoin long-term holders are still in a profit position.
Historically, when LTHs face losses, it often marks the true end of a market cycle, but this is not the case yet. As a result, the market remains where long-term holders continue to hold most of their Bitcoin at a profit, providing an encouraging signal for future price movement.
Additionally, Long Term Holder Supply Falls Into Loss” further strengthens this view. Although the supply held by long-term holders increases, the chart shows that the total supply in loss has risen during downturns. This points to the challenges long-term holders face when price corrections occur, but it also reflects their confidence in Bitcoin’s long-term prospects.
