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Bitcoin’s Clench: Long-Term Holders Tighten Grip on Shrinking Supply

In a marketplace where every ebb and flow is watched with eagle eyes, Bitcoin’s latest trend is turning heads. The available supply of Bitcoin is dwindling to new lows, as holders with an eye on the long game are locking away their digital treasure troves at unprecedented rates, data from Glassnode reveals.

The numbers tell a striking story: wallets that have shown little interest in selling are now home to over 15.4 million bitcoins. This behavior is mirrored in the net position change of long-term Bitcoin holders, who are increasingly holding on to their stash rather than cashing in.

Glassnode’s data paints a picture of a market tightening its belt, where long-term holder supply is diverging ever more from short-term holder supply. It’s a clear indication that those looking to buy from short-term sellers might be facing slim pickings.

Long-term holders have a history of playing the waiting game, typically looking for the market to soar to new price peaks before they even think about selling. This pattern was evident during the bull run of 2021, which saw a significant drop in long-term supply coinciding with an increase in short-term supply and exchange inflows.

The reluctance to sell isn’t just about hunches; it’s backed by bullish expectations. With chatter about the potential regulatory nod for a spot bitcoin ETF and the upcoming Bitcoin halving in April, optimism is in the air.

Adding fuel to this fire are projections like those from investment firm Bernstein, which sees Bitcoin hitting a stratospheric $150,000 by mid-2025.

Interestingly, Glassnode suggests that current Bitcoin prices are in a zone of fascination, especially since the rise above $30,000 has made most short-term held coins profitable. This profitability could lead to a shifting of coins into the hands of new investors, particularly if Bitcoin dips below its current $35,000 valuation.

For investors and crypto-enthusiasts, these trends offer a glimpse into the psyche of Bitcoin’s most steadfast supporters. It’s a reminder that in the volatile seas of cryptocurrency, the anchors of long-term holding can shape the market’s supply—and possibly its future.