Editor’s Note
This article highlights a significant milestone in Bitcoin’s market dynamics, with long-term holders now controlling a record 74% of the supply. Such concentration often signals strong investor conviction and can influence future price stability.
The percentage of Bitcoin’s supply held by long-term holders has reached a 15-year high, offering a bullish outlook for the leading cryptocurrency. Asset manager Ark Invest highlighted this development in a recent report and explained what this could mean for BTC in the future.
According to the Ark Invest report, the supply held by long-term holders has reached 74% of Bitcoin’s total supply, marking a 15-year high for this metric. The asset manager noted that this trend indicates growing market conviction in BTC’s role as a store of value or “digital gold.” These long-term holders refer to addresses that have held BTC for 155 days or more.
This development comes at a time when Bitcoin is experiencing massive demand from institutional investors through ETFs and treasury companies. These investors are considered better “diamond hands” than retail investors, meaning this metric could continue to rise, with long-term holders gaining more control over BTC’s total supply.
This institutional buying has also driven Bitcoin’s price to several all-time highs (ATHs) this year, with BTC reaching up to $123,000 last week. The leading cryptocurrency appears to still be in a price discovery phase, as ETFs led by BlackRock and treasury companies, spearheaded by Saylor’s strategy, continue accumulating at an unprecedented pace.
on Bitcoin’s price, predicting it could reach $1.5 million by 2030. They expect BTC to hit this target due to increased institutional investment and global recognition of Bitcoin’s ability to serve as a store of value. In an interview with CNBC, Cathie Wood also doubled down on her prediction.
Wood added that institutions are still testing the waters despite the massive accumulation so far. As such, she still expects an increase in adoption by these companies. Meanwhile, only about 1 million Bitcoins remain unmined.
The Ark Invest report also revealed that global liquidity per bitcoin reached a 12-year high. This metric hit this peak with $5.7 million in global M2 supply per circulating BTC. The asset manager commented that this ratio could continue to rise given the decreasing future growth of Bitcoin’s supply and the continued expansion of global liquidity.
Meanwhile, in June, Bitcoin managed to hold above the support between $96,000 and $99,000 and is now well above these levels. $98,888, $96,278, and $71,393 are the cost bases for BTC’s short-term holder, the 200-day moving average, and the on-chain average, respectively, making this development bullish for the leading cryptocurrency.
At the time of writing, Bitcoin’s price is trading around $19,100, up in the last 24 hours, according to CoinMarketCap data.