Phi Deltalytics
Bitcoin: Long-term Holder Behavior
In past Bitcoin cycles, the market dynamics have often involved a transition of Bitcoin from long-term holders to short-term holders during periods of heightened activity. This shift typically occurs as long-term holders begin to distribute and capitalize on profits. However, the current market presents a deviation from this pattern. The percentage of 1-year inactive supply as a proportion of the total supply remains higher compared to late 2022. This indicates that we have yet to witness a significant movement of bitcoins from long-term holders to short-term holders in the current cycle. This observation implies that long-term holders are maintaining their positions rather than actively distributing holdings to short-term holders. As a result, there might be more room for upside potential until a significant distribution pattern emerges.